Mortgage applications for purchase loans have dropped 13% year over year on a 4 week rolling average, while total applications fell 4.2% in the week ended October 2. Daily trackers from Mortgage News Daily showed some rates climbing as high as 7.63% recently. For a median priced existing home, the estimated monthly principal and interest payment has reached $2,398, while a $400,000 loan at current rates now costs roughly $1,136 more per month than it did at 3% pandemic lows.
Wednesday, October 21, 2026
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21% of US Home Sellers Cut Asking Prices on Borrowing Surge
US Markets13 days ago
The average 30 year fixed mortgage rate hit 7.4% for the week ending October 8 according to Freddie Mac, capping a 7 week streak of increases. This borrowing spike has led a record 21% of home sellers to reduce asking prices for this time of year, according to Redfin data, as buyers retreat from the market. Home prices have already fallen year over year in several cities, including Dallas by 5%, Austin by 3.4% and Tampa by 1.9%, with some sellers now offering closing cost credits and rate buydowns to entice buyers.
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