Mortgage applications fall 4.2% as 30-year rate hits 7.49%

Mortgage applications decreased 4.2% from one week earlier, according to data from the Mortgage Bankers Association’s weekly mortgage applications survey for the week ending Oct. 2, 2026. On an unadjusted basis, the index decreased 4% compared with the previous week. The refinance index decreased 8% from the previous week and was 56% lower than the same week one year ago. The seasonally adjusted purchase index decreased 2% from one week earlier, and the unadjusted purchase index decreased 2% compared with the previous week and was 15% lower than the same week one year ago. “Mortgage rates moved to their highest level in almost three years last week, with the 30-year fixed rate reaching 7.49% as both Treasury rates increased and spreads widened with the increase in rate volatility,” said Joel Kan, CMB, MBA’s vice president and deputy chief economist. “Very few homeowners have an incentive to refinance at these rates, and the jump in borrowing costs has caused many potential borrowers to step back from the purchase market. With rates roughly a percentage point higher than a year ago, refinance applications last week were at the lowest level since 2025 and fell to less than half of la...