Key facts
- Mortgage applications fell 4.2% in the week ending Oct. 2, 2026.
- The average rate for a 30-year fixed mortgage rose to 7.49%.
- Refinance applications were at their lowest level since 2025.
- Purchase applications declined 2% week-over-week.
- FHA purchase applications fell 6%, the largest decline among loan types.
- The share of adjustable-rate mortgages remained steady at 10.3%.
Mortgage applications in the U.S. saw a significant decrease of 4.2% in the week ending October 2, 2026, driven by rising interest rates. The average rate for a 30-year fixed mortgage climbed to 7.49%, its highest level in nearly three years, according to data from the Mortgage Bankers Association (MBA).
Both refinance and purchase mortgage applications declined. The refinance index dropped 8% week-over-week and was 56% lower than the same week a year ago, reaching its lowest level since 2025. The seasonally adjusted purchase index fell 2% from the previous week, with the unadjusted purchase index also down 2% and 15% lower year-over-year.
Joel Kan, vice president and deputy chief economist at the MBA, noted that the increase in Treasury rates and widening spreads contributed to higher mortgage rates. He stated that few homeowners have an incentive to refinance at current rates, and the jump in borrowing costs has caused potential buyers to step back from the market. FHA purchase applications saw the largest decline, falling 6%, exacerbating affordability challenges for homebuyers.
The share of adjustable-rate mortgages (ARMs) remained steady at 10.3% of total applications, as borrowers seek ways to lower initial payments. The refinance share of mortgage activity decreased to 37.0% from 38.3% the prior week.
Xactus's Mortgage Intent Index, which tracks credit-pull activity, also showed a decline, falling 5.69% week-over-week to 102.7. Thomas Lloyd, chief strategy officer at Xactus, commented that elevated rates continue to weigh on borrower activity, with demand down approximately 21% from the same week last year. He anticipates that a meaningful near-term rebound in mortgage intent is unlikely due to seasonal declines and persistent high rates.