October 23 2026

Mortgage applications continued to decline even as mortgage rates finally moved lower. The Mortgage Bankers Association (MBA) reported a 5.3% drop in total application volume for the week ending October 16, despite the first weekly decline in mortgage rates in more than two months. The average 30-year fixed mortgage rate fell to 7.41% from 7.50% the previous week. That improvement wasn't enough to revive demand, with both purchase and refinance applications moving lower. The seasonally adjusted Purchase Index fell 7% for the week and was 18% below year-ago levels . Refinances fared somewhat better, declining 2%, though activity remained 59% lower than a year earlier. “Purchase applications fell 18 percent behind last year's pace, as higher rates are pricing buyers out of the market,” said MBA's Joel Kan, who also noted that adjustable-rate mortgages remain an option for qualified borrowers looking for lower rates. ARMs held steady at 10.5% of applications , with rates nearly a full percentage point below the 30-year fixed average. The refinance share of total applications increased to 39.0% from 37.7% the previous week. That shift came despite the decline in refinance volume, reflecting the steeper drop in purchase applications. Mortgage Rate Summary: 30yr Fixed: 7.41% (from 7.50%) | Points: 0.75 (from 0.83) 15yr Fixed: 6.73% (from 6.87%) | Points: 0.73 (from 0.90) Jumbo 30yr: 7.33% (from 7.49%) | Points: 0.60 (from 0.70) FHA: 7.13% (from 7.19%) | Points: 1.15 (from 1.21) 5/1 ARM: 6.46% (from 6.54%) | Points: 1.11 (from 1.13)

October 23 2026

Residential construction failed to find even footing in September, with housing starts declining and single-family building permits pulling back, while total permits held nearly steady and completions edged higher. This week's Census Bureau data highlights weakness in new construction, particularly on the single-family side, while starts and completions were comparatively stable. Privately owned housing starts fell 5.2% to a seasonally adjusted annual rate of 1.221 million , down 7.4% from September 2025. Single-family starts declined 4.6% to 859k , and multi-family came in at 349k . Building permits were more stable, slipping just 0.2% to an annual rate of 1.400 million , although they were 3.0% below the September 2025 pace. Single-family authorizations fell 4.0% to 845k , while multi-family permits rose to 503k . The contrast between total permits and single-family authorizations suggests that the overall pipeline for future construction was relatively steady, even as the single-family segment weakened. Multi-family permits accounted for a larger share of total authorizations in September, though monthly figures can fluctuate considerably in that segment. Housing completions bounced back from last month, and increased 2.2% to a seasonally adjusted annual rate of 1.192 million , still 14.0% below the September 2025 rate. Single-family completions slipped 2.4% to 840k , multi-family completions came in at 339k .

October 23 2026

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) dropped three points to 29 in October--its lowest level in 14 years. As per usual, higher mortgage rates, rising costs, and worsening labor and lot conditions were the driving factors.  All three component indices declined, with prospective buyer traffic suffering the steepest drop. HMI Component September October Change Current sales conditions 35 33 -2 Sales expectations 37 32 -5 Prospective buyer traffic 23 18 -5 "Buyer traffic has now fallen to its lowest level since April 2012, excluding the initial pandemic shock in April 2020.” said NAHB Chairman Bill Owens. Builders are also facing higher construction loan, material and diesel costs, along with construction delays tied to immigration enforcement activity. Builders have responded by continuing to slash prices. The share reporting price cuts climbed to 43% in October, the highest level during the 2020-2026 period. The average reduction remained at 6% for the seventh consecutive month. Sales incentives were reported by 65% of builders, marking the 19th straight month that at least 60% have offered them.