US Mortgage Applications Rise as 30-Year Rates Hit 7.37%
Mortgage applications increased 3.4% last week as interest rates fell for a second consecutive week, though year-over-year volumes remain significantly lower.
Total mortgage application volume in the United States rose 3.4% for the week ending October 23, 2026, marking the first weekly gain since August. The Mortgage Bankers Association reported that the average contract interest rate for 30-year fixed-rate mortgages decreased to 7.37% from 7.41%, the lowest level in three weeks.
Purchase applications increased 4% for the week, while refinance applications rose 3%. Despite these gains, both categories remain well below previous levels; purchase applications are 18% lower and refinance applications are more than 60% lower than the same period last year. This disparity is driven by rising home prices, economic uncertainty surrounding midterm elections, and a lock-in effect where many homeowners maintain historical rates below 4%.
To mitigate high costs, borrowers are increasingly utilizing riskier adjustable-rate mortgages, which now comprise 11.3% of all applications, the highest share in over a year. While the weekly rebound provided some relief, the Mortgage Bankers Association and Fannie Mae expect borrowing costs to remain near current levels through next year, potentially limiting growth in single-family originations.
