On Wednesday, October 7, 2026, Optimal Blue released its rate indices showing the 30-year fixed-rate mortgage (FRM) at 7.45 percent. The 30-day range was 7.01 percent to 7.45 percent.
The 15-year fixed-rate mortgage was 6.53 percent. The 30-day range was 6.13 percent to 6.79 percent.
According to the Mortgage Bankers Association (MBA), mortgage applications decreased 4.2 percent from one week earlier. The Refinance Index decreased 8 percent from one week ago and was 56 percent lower than the same week one year ago. The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 15 percent lower than the same week one year ago.
“Mortgage rates moved to their highest level in almost three years last week, with the 30-year fixed rate reaching 7.49 percent as both Treasury rates increased and spreads widened with the increase in rate volatility,” said Joel Kan, CMB, MBA’s Vice President and Deputy Chief Economist. “Very few homeowners have an incentive to refinance at these rates, and the jump in borrowing costs has caused many potential borrowers to step back from the purchase market. With rates roughly a percentage point higher than a year ago, refinance applications last week were at the lowest level since 2025 and fell to less than half of last year’s pace.”
Added Kan, “Purchase activity decreased across all loan types with FHA purchase applications falling the most, declining 6 percent, as these higher rates add to ongoing affordability challenges for many homebuyers. As noted in recent weeks, a higher share of borrowers is opting for ARMs to lower their initial payments, with the ARM share steady at 10.3 percent last week.”
More housing and market news
On October 2, the U.S. Bureau of Labor Statistics reported that the economy added 29,000 nonfarm jobs in September, falling short of the expected 84,000. In response to the report, MBA SVP and Chief Economist Mike Fratantoni said, “The job market was somewhat weaker in September, with the payroll increase at only 29,000, and the prior 2 months revised down by 60,000 jobs. The unemployment rate ticked up to 4.2 percent, largely due to a higher participation rate as more people actively looked for work. Wage growth slowed further to a 3 percent rate.
“With inflation still too high, the Federal Reserve is unlikely to cut rates anytime soon,” Fratantoni added. “However, these data showing a softer job market may be enough to keep the Fed on hold at their October meeting. Wage growth continues to run below the pace of inflation, which will hamper consumer spending over time.”
In their speeches since the September meeting, Fed policymakers have portrayed the central bank’s benchmark interest rate hike as a cautious one. Most assessed that another quarter-point hike would likely be appropriate before the end of the year, but stressed the decision was not final.
Additional mortgage activity
- The adjustable-rate mortgage (ARM) share of activity remained unchanged at 10.3 percent of total applications.
- The FHA share of total applications decreased to 16.4 percent from 16.7 percent the week prior.
- The VA share of total applications decreased to 11.8 percent from 11.9 percent the week prior.
- The USDA share of total applications remained unchanged at 0.5 percent from the week prior.
This week in mortgage rates
Rates stay elevated. Here’s how average fixed rates broke down:
30-year fixed-rate loans: 7.45 percent (up from 7.38 percent)
15-year fixed-rate loans: 6.53 percent (down from 6.62 percent)
Check back next week for the most up-to-date mortgage and housing news.
September 30- Mortgage Rates Hit Highest Level in Almost Three Years, Applications Drop
On Wednesday, September 30, 2026, Optimal Blue released its rate indices showing the 30-year fixed-rate mortgage (FRM) at 7.38 percent. The 30-day range was 6.74 percent to 7.38 percent.
The 15-year fixed-rate mortgage was 6.62 percent. The 30-day range was 5.95 percent to 6.67 percent.
According to the Mortgage Bankers Association (MBA), mortgage applications decreased 6 percent from one week earlier. The Refinance Index decreased 9 percent from one week ago and was 56 percent lower than the same week one year ago. The unadjusted Purchase Index decreased 5 percent compared with the previous week and was 14 percent lower than the same week one year ago.
“Mortgage rates jumped to their highest level in almost three years, pushing borrowers to the sidelines. The 30-year fixed rate increased for the sixth consecutive week to 7.3 percent, the highest rate since November 2023,” said Joel Kan, CMB, MBA’s Vice President and Deputy Chief Economist. “Mortgage applications fell by 6 percent due to the recent surge in rates, with purchase and refinance applications both declining to their slowest weekly pace since 2025. Government refinances declined 13 percent, with both FHA and VA applications experiencing double digit decreases over the week."
Added Kan, “ARM loans, with rates around 80 basis points lower than fixed rate loans, accounted for 10.3 percent of applications, the highest share since October 2025.”
More housing and market news
According to the MBA, commercial and multi-family mortgage debt outstanding increased by $42.9 billion (0.9 percent) in the second quarter of 2026.
Commercial mortgage delinquencies were mixed in the second quarter of 2026. “Commercial mortgage delinquency rates varied in the second quarter, with CMBS delinquencies improving while Fannie Mae, Freddie Mac, and life company loans saw modest upticks,” said Reggie Booker, MBA’s Associate Vice President of Commercial Research. “Multi-family continues to face a tough combination of higher interest rates and challenging market fundamentals, with flat or declining effective rents in a number of markets. Conditions vary widely by market and property, with some owners refinancing successfully, while others are struggling to find financing. Additionally, delinquencies on multi-family loans are higher than in the recent past, though still in the middle of the historical range for the GSEs.”
According to MBA’s Purchase Applications Payment Index (PAPI), homebuyer affordability improved modestly in August, with the national median payment applied for by purchase applicants decreasing to $2,162 from $2,175 in July.
- The adjustable-rate mortgage (ARM) share of activity increased to 10.3 percent of total applications.
- The FHA share of total applications remained unchanged at 16.7 percent from the week prior.
- The VA share of total applications decreased to 11.9 percent from 12 percent the week prior.
- The USDA share of total applications decreased to 0.5 percent from 0.6 percent the week prior.
30-year fixed-rate loans: 7.38 percent (up from 7.14 percent)
15-year fixed-rate loans: 6.62 percent (up from 6.46 percent)
September 16- 30-Year Fixed-Rate at Highest Level Since May 2025, Purchase and Refi Applications Drop
rate mortgage (FRM) at 7.01 percent. The 30-day range was 6.65 percent to 7.01 percent.
The 15-year fixed-rate mortgage was 6.39 percent. The 30-day range was 5.91 percent to 6.39 percent.
According to the Mortgage Bankers Association (MBA), mortgage applications decreased 4.1 percent
from one week earlier. The Refinance Index decreased 9 percent from one week ago and was 65 percent
lower than the same week one year ago. The unadjusted Purchase Index decreased 13 percent
compared with the previous week and was 19 percent higher than the same week one year ago.
“Ongoing market concerns over spiking energy prices, persistently high inflation, and future monetary
policy pushed bond yields and mortgage rates higher last week. As the 10-year Treasury inched closer to
the 5 percent mark, mortgage rates followed and were almost 7 percent. The 30-year fixed rate at 6.97
percent was at its highest level since May 2025,” said Joel Kan, CMB, MBA VP and Deputy Chief
Economist. “After adjusting for the Labor Day holiday, purchase applications dipped relative to the week
prior as higher mortgage rates caused many buyers to pause their purchase decisions. The current level
of rates also eliminated much of the benefit to refinance for many borrowers, resulting in declines in
Conventional, FHA, and VA refinance applications.”
More housing and market news
On Wednesday, for the first time in over three years, the Federal Reserve raised the benchmark interest
rate by a quarter percentage point to a target range of 3.75 percent to 4 percent. The Federal Open
Market Committee (FOMC) voted unanimously to approve the hike. Fed Chair Kevin Warsh said the move
was because “inflation is too high and has been for too long”, pointing to elevated price pressures and
geopolitical factors.
Commenting on the rate hike, Mike Fratantoni, MBA SVP and Chief Economist, said, “Longer-term rates,
including mortgage rates, had already baked in the expectation of hikes at this and future meetings.
Thus, longer-term rates have not moved much in response to this news.”
“Housing and mortgage activity slowed abruptly as mortgage rates moved higher over the past several
weeks. MBA forecasts two additional hikes from the Fed over the next year and expects mortgage rates
to stay near current levels over the forecast horizon.”
According to MBA’s Builder Application Survey (BAS), mortgage applications for new home purchases
decreased 5.5 percent from a year ago. Compared with July 2026, applications decreased by 6 percent.
This change does not include any adjustment for typical seasonal patterns.“Increasing mortgage rates continue to put pressure on new home sales activity. Applications to purchase newly constructed homes declined in August for the fifth straight month, with the level of applications down to its lowest in 2026,” said MBA’s Kan. “More homebuyers turned to FHA loans in response to higher mortgage rates and those loans accounted for 35 percent of applications, the highest
share in three months. New home sales were estimated to have increased over the month to a seasonally
adjusted annual pace of 664,000 units but remain 9 percent lower than last year’s pace.
- The refinance share of mortgage activity decreased to 39.4 percent of total applications from 40.9 percent the previous week.
- The adjustable-rate mortgage (ARM) share of activity decreased to 8.4 percent of total applications.
- The FHA share of total applications decreased to 16.9 percent from 17.2 percent the week prior.
- The VA share of total applications increased to 12.4 percent from 12 percent the week prior.
- The USDA share of total applications decreased to 0.4 percent from 0.5 percent the week prior.
This week in mortgage rates
Rates rise higher. Here’s how average fixed rates broke down:
30-year fixed-rate loans: 7.01 percent (up from 6.8 percent)
15-year fixed-rate loans: 6.39 percent (up from 6.13 percent)
Check back next week for the most up-to-date mortgage and housing news.
