Mortgage rates tick lower to 7.41% while applications drop 5.3%

Business Oct 21, 2026

For the first time in over two months, mortgage rates have dropped a bit, from 7.50% to 7.41%.

But even with this small break, fewer people are applying for mortgages: overall applications fell by 5.3% last week.

As Mortgage Bankers Association economist Joel Kan put it, lower rates just aren't enough to get buyers or refinancers moving right now.

Refinance applications down 59% annually

Refinance applications dropped another 2% last week and are down a huge 59% compared to last year.

Purchase applications also slipped by 7% and are now 18% lower than this time in 2025.

With rates staying high, more buyers are checking out adjustable-rate mortgages (ARMs) for their lower starting payments, even though those can jump later on.