US mortgage applications fall 5.3% despite rate decline

Key facts

• Purchase applications fell 18% behind last year's pace.
• The refinance share of mortgage activity increased to 39% of total applications.
• The adjustable-rate mortgage (ARM) share of activity remained unchanged at 10.5%.

Mortgage applications declined 5.3% in the week ending October 16, 2026, despite a drop in mortgage rates. The Mortgage Bankers Association's weekly survey showed that both purchase and refinance applications continued to fall. The 30-year fixed mortgage rate decreased to 7.41% from 7.5% the previous week, but this was insufficient to stimulate activity. Purchase applications were down 18% compared to the same week last year, with higher rates pricing buyers out of the market. The refinance share of mortgage activity rose to 39% of total applications, while the adjustable-rate mortgage (ARM) share held steady at 10.5%.