US mortgage applications rose 3.4% in the week ending Oct. 23, the first increase since August, according to the Mortgage Bankers Association's weekly survey.
The gain ended a seven-week losing streak, after applications fell for a seventh straight week in the prior report.
Borrowing costs did the work. The average contract rate on 30-year fixed loans with conforming balances of $832,750 or less slipped to 7.37% from 7.41%, a three-week low and a second straight weekly decline.
Purchase applications climbed 4% on a seasonally adjusted basis. Refinance applications rose 3%.
First rise since August: MBA mortgage applications
Weekly change and year-over-year comparison for the week ending Oct. 23, 2026.
| Measure | This week | Vs a year ago |
|---|---|---|
| Market Composite | +3.4% | – |
| Purchase Index | +4.0% | -18% |
| Refinance Index | +3.0% | -61% |
| 30-yr Fixed Rate | 7.37% (7.41% last week) | – |
| ARM Share | 11.3% | – |
The yearly comparison is still ugly
Purchase volume ran 18% below the same week in 2025, and refinancing sat 61% lower.
Rates remain more than a full percentage point above year-ago levels, MBA deputy chief economist Joel Kan said.
Roughly half of all borrowers carry a mortgage rate below 4%, per Federal Housing Finance Agency data, which keeps existing homeowners locked in place.
Borrowers are reaching for adjustable rates
The adjustable-rate mortgage share of applications hit 11.3%, the highest in over a year, as applicants chased lower monthly payments.
The average 5/1 adjustable rate fell to 6.41% from 6.46%, nearly a percentage point cheaper than the 30-year fixed. Those loans reset to market rates once the introductory term ends.
The backdrop for buyers hasn't improved much. Rates climbing from 6.66% in late August to 7.40% on Oct. 8 cost buyers 7.2% of their purchasing power, and September pending home sales hit all-time lows, according to the National Association of Realtors.
Jumbo 30-year loans averaged 7.28% and FHA-backed mortgages averaged 7.12%, both down on the week.
Attention now shifts to the Federal Reserve. Traders put 90.6% odds on no change at this week's meeting, leaving commentary from Fed Chair Kevin Warsh as the main variable for where the 10-year Treasury yield, and mortgage rates with it, settle next.
