Mortgage applications drop 5.3% despite rate decline

Mortgage applications decreased 5.3% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending Oct. 16, 2026. On an unadjusted basis, the index decreased 5% compared to last week’s data. The refinance index, which decreased 2% from the previous week, was 59% lower than the same week one year ago. The seasonally adjusted purchase index decreased 7% from one week earlier. The unadjusted Purchase Index decreased 7% compared with the previous week and was 18% lower than the same week one year ago. “Mortgage rates decreased for the first time in over two months, with the 30-year fixed rate dropping to 7.41%. However, lower rates were not enough to boost application activity, as both purchase and refinance applications continued to decline,” said Joel Kan, CMB, MBA’s vice president and deputy chief economist. “Purchase applications fell 18% behind last year’s pace, as higher rates are pricing buyers out of the market. The ARM share held steady at 10.5%, as ARM rates remained almost a full percentage point lower than the 30-year fixed rate, giving qualified borrowers a lower rate option to purchase a home...