# U.S. Mortgage Applications Fall 5.3% Despite Lower 30-Year Rate By Enna Lee Canonical URL: https://www.tokenpost.com/news/investing/37032 Published: 2026-10-21T21:03:55.000Z Updated: 2026-10-21T21:03:55.000Z Section: Investing > The purchase index dropped 7% and the refinance index fell 2% in the week ended Oct. 16. The average conforming 30-year contract rate eased to 7.41%. U.S. mortgage demand weakened in the week ended Oct. 16 even as the average rate on a 30-year fixed loan fell for the first time in more than two months, adding to signs of pressure on the housing market. The seasonally adjusted index of total mortgage applications fell 5.3% from the previous week. The unadjusted index declined 5%. Both measures cover applications for home purchases and refinancing, so they track requests for financing rather than completed home sales. The average contract rate for a 30-year fixed mortgage on conforming loans eased to 7.41% from 7.50%. That rate covers loans with balances of $832,750 or less. The decline marked the first drop in the average rate in more than two months, but neither major category of mortgage applications rose during the survey week. The seasonally adjusted purchase index fell 7% from the previous week. The refinance index dropped 2%. The figures describe changes in separate indexes, rather than the number of purchase or refinance loans submitted. Both indexes were also below their year-earlier levels. The unadjusted purchase index was down 18% from the same week in 2025, while the refinance index was 59% lower. Those comparisons show that the latest weekly declines came amid a broader pullback in mortgage applications. “It is very clear that the higher mortgage rate environment has cooled the housing market this fall,” said Joel Kan, vice president and deputy chief economist of the Mortgage Bankers Association. A separate measure of housing activity had already weakened. September’s [pending home sales index]() fell 7.3% from August and stood 11.3% below its September 2025 level. Pending home sales track signed contracts for existing homes before purchases close. That monthly index covers a different period and stage of a home purchase than the mortgage application figures for the week ended Oct. 16. ## Links in this article - [pending home sales index](https://www.tokenpost.com/news/investing/36074)