International

Mortgage Demand Still Weak: Purchase Applications 19% Lower

  • by- Grihik
  • Nov 5, 2026
MBA says applications fell 1.2% even as the 30-year rate dropped to 7.30% for a third week. Purchase demand is 19% below last year.
Mortgage Demand Still Weak: Purchase Applications 19% Lower

U.S. mortgage applications fell 1.2% in the week ending October 30, the Mortgage Bankers Association reported on Wednesday, giving back much of the previous week's 3.4% gain even as the 30-year rate eased for a third straight week.

What are the key numbers?

  • 30-year fixed contract rate (conforming): 7.30%, down from 7.37%, the lowest since September

  • Jumbo 30-year: 7.34%, from 7.46%

  • Purchase index: down 2% on the week seasonally adjusted (down 4% unadjusted) and 19% below a year ago

  • Refinance index: up 0.1% and about 60% below a year ago

  • Trend: purchase applications have fallen in all but one of the past nine weeks and are near their weakest since January 2025, according to Bloomberg

 

 

What does the MBA say?

Chief economist Mike Fratantoni said rates drifted down after the Federal Reserve's decision to hold on additional hikes in October, but activity remains quite slow, with purchase volume lower and refinancing effectively flat at a very low level.

How does it fit with other data?

Freddie Mac's weekly average was 7.24% on October 29, the lowest of the month, and Redfin showed pending sales at a record low. Mortgage News Daily's index moved higher at the start of this week after a jobs report showed more job openings than expected.

Why does it matter?

Applications are an early signal for closings, and weak purchase demand now points to weak home sales through year-end. A rate near 7.3% is still nearly a full point above a year ago.

 

What next?

Freddie Mac's weekly rate is due today at noon ET, and the next MBA survey comes November 11.