MBA US Mortgage Applications Decline Further in Week Ended Oct. 16 Despite Lower Mortgage Rates

07:10 AM EDT, 10/21/2026 (MT Newswires) -- Mortgage applications fell by 5.3% in the week ended Oct. 16 due to declines in both refinancing activity and new home applications despite the first drop in 30-year fixed mortgage rates in two months, according to Mortgage Bankers Association data released Wednesday. This follows a 2.7% decrease in overall activity in the week ended Oct. 9. Applications for refinancing loans fell by 2%, while new purchase applications declined by a seasonally adjusted 7%. The average contract interest rate for 30-year fixed mortgages with loan balances of $832,750 or less fell to 7.41% from 7.50% in the previous week. "It is very clear that the higher mortgage rate environment has cooled the housing market this fall," said Joel Kan, MBA's vice president and deputy chief economist. Kan noted that the level of mortgage rates continued to price buyers out of the market, with adjustable rates becoming more popular due to lower rates than fixed rate mortgages.