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- Mortgage rates sit at nearly 3-year high, and demand continues to shrink
Mortgage rates sit at nearly 3-year high, and demand continues to shrink
Plus: UWM will now auto-select the best credit score on every loan
👋 Hi and happy Wednesday! Today’s newsletter is 584 words, a 2.5-minute read.
Disclaimer: Average mortgage rates as of October 06, 2026. © MND Daily Rate Index.
1. Mortgage rates sit at nearly 3-year high, and demand continues to shrink
The 30-year fixed averaged 7.49% last week, the highest since late 2023, pushing total application volume down 4.2%. FHA purchase apps took the hardest hit, falling 6% for the week. With rates now roughly a percentage point above last year, the refi pool has all but dried up.
Total volume: down 4.2% week over week
Purchase apps: down 2% week over week, down 15% year over year
Refi apps: down 8% week over week, down 56% year over year
Rates pulled back slightly to start this week, sitting around 7.56% as of Monday. MND's Matthew Graham noted a possible "double top" forming — the same level hit on September 30 — which some analysts read as a sign upward momentum may be slowing.
2. UWM will now auto-select the best credit score on every loan
UWM is pulling both FICO and VantageScore 4.0 on every credit report and automatically applying whichever score yields the best eligible pricing for the borrower. Brokers don't have to choose — the system compares results behind the scenes and defaults to the stronger outcome.
The move follows Rocket's decision last week to make VantageScore its default for eligible retail loans. Both companies are repositioning around FHFA's framework, which now allows lenders to use either Classic FICO or VantageScore 4.0 on conforming loans with a single LLPA pricing matrix for both models.
"No one should have to worry about which credit model wins," Ishbia said. "We handle that automatically."
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Brokers are discovering the power that OneHomeowner’s client connections can bring to their business. Aldo Martinez of Movement Mortgage recently implemented OneHomeowner into his client retention processes and the results speak for themselves:
Applications up 63%
Locked loans up 47%
Fundings up 22%
3. More Nuggets
🏦 Pennymac deploys VantageScore 4.0 across all production channels. (BusinessWire)
🏘️ The return of the specialist: Why a more fragmented mortgage market favors active management. (HousingWire)
🚀 Rocket Mortgage names Nicole Beattie chief servicing officer. (LinkedIn)
🆕 Wealthfront adds Washington to its mortgage footprint. (Press Page 3)
4. Vishal Garg wins back control of Better's board
Shareholders representing 52.02% of Better's voting power backed Garg's effort to remove five directors, including interim CEO Daniel Lewis. An independent election inspector certified the results Monday, and Better said it will not challenge the outcome.
The board has been reduced from nine seats to five, with Garg appointing EA co-founder Bing Gordon, Activant Capital's Steven Sarracino, and two unnamed Better employees to fill the remaining seats.
The reconstituted board is moving to unwind the company's poison pill and dismiss Better's pending lawsuit against Garg in New York federal court. A new interim CEO candidate has been identified and will be announced once paperwork is finalized.
5. Charted: One-year shift in active housing inventory for sale: Shift between Sept 2025 and Sept 2026
☀️ You’re all caught up. See you on Friday!
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