Mortgage applications fell 2.7 percent in the week ending October 9 as the average 30-year fixed rate edged up to 7.50 percent from 7.49 percent, more than a percentage point above a year ago and the highest since November 2023, according to the Mortgage Bankers Association. Purchase applications fell 4 percent and refinance applications were 56 percent below a year earlier, while the adjustable-rate share rose to 10.5 percent, its highest since October 2025, as borrowers traded reset risk for lower initial payments.
Mortgage rates hit 7.5 percent as borrowers turn to ARMs
The average 30-year fixed mortgage rate rose to 7.50 percent, its highest since November 2023, in the Mortgage Bankers Association survey for the week ending October 9, while the adjustable-rate share of applications climbed to 10.5 percent, its highest in a year.
Why it matters: Housing is where the Fed's tightening bites first: at 7.5 percent, purchase demand is falling again and borrowers are accepting reset risk to cut monthly payments, a sign affordability stress is building rather than easing.
Data as of Wednesday, October 14, 2026. MBA Weekly Mortgage Applications Survey for the week ending October 9, 2026, as released by the MBA and reported by CNBC (read in full via republication; CNBC is blocked for direct fetch in this environment) and Bloomberg. Developing item, 2 to 3 sentences by design.
Sources
- Even more borrowers choose riskier mortgages, as higher interest rates crush affordability · CNBC · 2026-10-14
- US Mortgage Rates Hit 7.5%, Extending Slump in Purchase Activity · Bloomberg · 2026-10-14
- Mortgage Applications Decrease in Latest MBA Weekly Survey · Mortgage Bankers Association · 2026-10-14