10/16/2026
Your weekly economic update is here. Here is what you need to know:
• Mortgage rates held steady last week, ending a seven-week streak of increases and remaining at their highest level in three years. While borrowing costs are still significantly higher than a year ago, the pause offers some welcome stability for the housing market.
• Mortgage applications declined 2.7% for the week ending October 9 as higher borrowing costs continued to weigh on activity. Adjustable-rate mortgages grew to 10.5% of applications, their highest share since October 2025, as more borrowers looked for ways to lower monthly payments.
• Inflation remained elevated in September, with consumer prices rising 0.6% for the month and 3.7% from a year earlier. Energy costs were a major driver, while core inflation remained more moderate at a 2.6% annual pace.
• Consumer sentiment fell to a five-month low in October as households continued to feel the effects of high prices and borrowing costs. While expectations for personal finances improved slightly, concerns about affordability and the broader economy remain elevated.
For more timely insight on the forces moving the housing and mortgage markets, visit our website and stay informed. https://tinyurl.com/ysa2mccu