U.S. mortgage demand weakened again last week, despite a modest decline in borrowing costs. Total mortgage applications fell 1.2% on a seasonally adjusted basis for the week ending Oct. 30, 2026, according to the Mortgage Bankers Association’s weekly survey.
The unadjusted index dropped 2% from the prior week. The results followed a period in which mortgage rates moved lower after the Federal Reserve held off on additional rate increases at its October meeting. The MBA said the average contract rate for a 30-year fixed mortgage declined to 7.3% from 7.37%, its lowest level since September.
Purchase demand remains below last year
Home-purchase activity was the main source of weakness. The seasonally adjusted purchase index decreased 2% from the previous week. On an unadjusted basis, purchase applications fell 4% and were 19% below the level recorded during the same week a year earlier.
Mike Fratantoni, the MBA’s senior vice president and chief economist, said the lower rate had not yet produced a meaningful increase in activity.
“While the 30-year rate declined to 7.3%, activity is still quite slow, with purchase application volume down for the week and refinance volume effectively flat at a very low level.” — Mike Fratantoni, Mortgage Bankers Association
Refinancing, which involves replacing an existing mortgage with a new loan, was nearly unchanged. The refinance index rose 0.1% from the prior week but remained 60% lower than during the comparable week in 2025. Refinances represented 39.8% of all mortgage applications, up from 38.9% the previous week.
Adjustable-rate share reaches a one-year high
Borrowers showed greater interest in adjustable-rate mortgages, or ARMs. These loans typically begin with an interest rate that can change later under the loan’s terms. ARMs made up 11.4% of all mortgage activity, the highest share since September 2025.
Fratantoni said borrowers were turning to ARMs to reduce their initial payments while fixed mortgage rates remained elevated. The shift does not indicate that all borrowers received the same rate, because the MBA figures are average contract rates across the loans covered by its survey.
| Mortgage category | Average rate or share | Weekly change |
|---|---|---|
| 30-year fixed, conforming loans | 7.3% | Down from 7.37% |
| 30-year fixed, jumbo loans | 7.2% | Down from 7.28% |
| 30-year fixed, FHA-backed loans | 7.02% | Down 10 basis points |
| 15-year fixed loans | 6.76% | Up 6 basis points |
| Adjustable-rate mortgages | 11.4% of applications | Highest share since September 2025 |
The survey also showed modest changes in the mix of government-backed loans. The Federal Housing Administration share fell to 16% from 16.6%. The Department of Veterans Affairs share rose to 11.2% from 11%, while the Agriculture Department share increased to 0.6% from 0.5%.
What the weekly data shows
- Purchase applications: Down 2% after seasonal adjustment and 4% without the adjustment; the unadjusted measure was 19% below a year earlier.
- Refinance applications: Up 0.1% for the week and 60% below the same week in 2025.
- Mortgage rates: The average 30-year conforming rate fell to 7.3%, while the 30-year FHA rate declined to 7.02%.
The figures point to a housing finance market in which slightly lower rates have not yet overcome broader affordability pressures. Applications provide an early measure of borrower activity, but they do not represent completed home purchases or finalized loans. For the week ending Oct. 30, the MBA data showed that both buyers and refinancing households remained cautious even as rates moved down.
