Weekly Real Estate News
WASHINGTON, Oct. 28, 2026 — Mortgage applications increased 3.4% last week as borrowing rates eased for a second consecutive week, but the rebound did little to erase the housing market’s steep year-over-year decline in purchase and refinance demand.
The Mortgage Bankers Association’s weekly survey, released Wednesday, covers applications submitted during the week ending October 23. Its seasonally adjusted Market Composite Index rose 3.4% from the previous week, while the unadjusted index gained 3%.
Purchase applications increased 4% on a seasonally adjusted basis. Yet the unadjusted purchase index was still 18% below the comparable week in 2025, underscoring how high mortgage rates continue to constrain would-be buyers. Refinancing applications rose 3% week over week but remained 61% below their year-earlier level.
30-year rate eases to 7.37%
The average contract rate for 30-year fixed mortgages with conforming loan balances of $832,750 or less declined to 7.37% from 7.41%, its lowest level in three weeks. Points increased slightly to 0.76 from 0.75, including the origination fee, for loans with an 80% loan-to-value ratio. The effective rate decreased despite the higher points.
Jumbo mortgage rates fell to 7.28% from 7.33%. The FHA-backed 30-year rate edged down to 7.12% from 7.13%, while the 15-year fixed rate declined to 6.70% from 6.73%.
The survey captures contract rates on applications submitted by participating lenders, not a guaranteed rate available to every borrower. Pricing varies with credit score, loan size, property type, points and other underwriting factors.
Adjustable-rate mortgages take a larger share
Adjustable-rate mortgages accounted for 11.3% of applications, the highest share in more than a year, MBA reported. The average contract rate for a 5/1 ARM fell to 6.41% from 6.46%, about 96 basis points below the survey’s 30-year conforming fixed-rate average.
That gap can make an ARM’s initial payment more attractive, especially when borrowers are struggling with affordability. It also exposes borrowers to potential payment changes after the introductory fixed-rate period. The difference in initial rates should not be presented as a permanent savings guarantee.
MBA Vice President and Deputy Chief Economist Joel Kan said lower rates offered some relief, particularly for conventional borrowers, but that many homeowners still hold mortgages well below current market rates. That limits the pool of borrowers with an economic incentive to refinance.
Government lending and refinance shares
Refinancing accounted for 38.9% of total applications, compared with 39.0% the prior week. FHA applications represented 16.6% of the total, up from 16.3%; VA applications accounted for 11.0%, down from 11.5%; and USDA applications remained at 0.5%.
Those percentages describe shares of survey applications, not changes in total funded loan volume. A larger program share can result from changes in demand elsewhere in the market.
What the rebound means for lenders
The week’s increase offers a modest improvement for mortgage originators following a sustained stretch of weak demand. The much larger year-over-year declines remain the central story: buyers continue to face difficult affordability conditions, while homeowners with older, lower-rate loans generally have little reason to refinance.
For lenders, the growing ARM share is worth watching as borrowers search for lower initial payments. The sustainability of a broader mortgage recovery will depend on whether rates decline enough to bring more buyers and refinancers back into the market, not merely on one week’s increase in applications.
Source: Mortgage Bankers Association, Weekly Applications Survey, Oct. 28, 2026. Underlying application week ended Oct. 23; publication date is Oct. 28. The survey covers closed-end residential mortgage applications from participating retail and consumer-direct lenders.
