Mortgage applications decreased 2.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 9, 2026.

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2 percent compared with the previous week. The Refinance Index decreased 0.4 percent from the previous week and was 56 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 4 percent from one week earlier. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 16 percent lower than the same week one year ago.

“Mortgage applications decreased as rates moved higher last week. The 30-year fixed rate was 7.5 percent, the highest rate since November 2023 and more than a percentage point higher than a year ago,” said Joel Kan, CMB, MBA’s Vice President and Deputy Chief Economist. “As a result, borrowers continue to rely more on ARM loans to help lower their monthly payments. The ARM share at 10.5 percent was at its highest level since October 2025. Last week’s decrease in refinances was mainly driven by a 5 percent drop in FHA refinance applications.”

The refinance share of mortgage activity increased to 37.7 percent of total applications from 37.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 10.5 percent of total applications.

The FHA share of total applications remained unchanged at 16.4 percent from the week prior. The VA share of total applications increased to 11.9 percent from 11.8 percent the week prior. The USDA share of total applications increased to 0.6 percent from 0.5 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 7.50 percent from 7.49 percent, with points decreasing to 0.83 from 0.84 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) increased to 7.49 percent from 7.39 percent, with points increasing to 0.70 from 0.52 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 7.19 percent from 7.14 percent, with points decreasing to 1.21 from 1.36 (including the origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 6.87 percent from 6.71 percent, with points decreasing to 0.90 from 1.05 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 6.54 percent from 6.43 percent, with points decreasing to 1.13 from 1.69 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.