US Mortgage Rates Fall Slightly: MBA

The average rate on a 30-year fixed mortgage in the US fell to 7.37% in the week ending October 23, marking a second consecutive weekly decline and providing some relief to prospective homebuyers and homeowners considering refinancing. The easing in borrowing costs helped lift overall mortgage application volume by 3.4% from the previous week, according to the Mortgage Bankers Association. Applications to refinance existing loans increased 3%, while applications for home purchases rose 4%. However, mortgage costs remain elevated compared with historical levels, with rates still more than one percentage point above those recorded during the same period last year. Many existing homeowners also continue to benefit from significantly lower rates secured before the recent rise in borrowing costs, limiting the incentive to refinance. Meanwhile, rising home prices continue to challenge affordability, meaning that the recent decline in mortgage rates may offer only modest relief to buyers.

The average 30-year fixed mortgage rate fell by 9 basis points to 7.41% in the week ended October 16, 2026, according to the Mortgage Bankers Association. This marked the first decline in borrowing costs in 11 weeks, following eight consecutive weeks of increases, as Treasury yields fell amid a flight to safety and growing expectations that the Federal Reserve would leave interest rates unchanged this month. Meanwhile, total mortgage applications dropped 5.3%, extending their decline to a seventh consecutive week. Refinancing applications fell by 2%, while applications for home purchases tumbled 7.3%.

The average 30-year fixed mortgage rate edged up 1 basis points to 7.5% in the week ended October 9, 2026, according to the Mortgage Bankers Association. It marked an eighth straight weekly increase, bringing the cumulative rise to 141 basis points since US-Israeli strikes against Iran began in late February. Borrowing costs continue to track elevated US Treasury yields amid expectations that the Federal Reserve will need to keep interest rates higher for longer to bring inflation under control. This upward movement has weighed heavily on the housing sector. Total mortgage applications fell 2.7%, extending their decline to a sixth consecutive week. Refinancing applications dropped 0.4%, while purchase applications fell 4%.