Which mortgage loans are borrowers using right now?

Fixed-rate mortgages account for most recent U.S. mortgage applications, and conventional loans make up the largest program category. Alongside that baseline, borrowers also use ARMs, FHA and VA loans, home-equity borrowing and refinancing.

These categories overlap. A loan can be fixed-rate, FHA-insured and used to buy a home at the same time. The latest available reports describe how often borrowers use each option; the loan features explain the different tradeoffs.

Fixed-rate mortgages still anchor the market

MBA reported that adjustable-rate mortgages represented 10.5% of applications in the week ending October 16, 2026. Most applications therefore remained fixed-rate. That weekly snapshot measures applications, not completed loans.

Mortgage Applications Decrease in Latest MBA Weekly Survey (new tab)

A fixed-rate mortgage keeps the interest rate and scheduled principal-and-interest payment stable for its term. Property taxes, insurance and other housing charges can still change. The defining feature is predictability: the borrower does not face a scheduled interest-rate reset.

Shopping for a mortgage (new tab)

Fixed and conventional do not mean the same thing. Fixed describes the rate; conventional describes financing that is not federally insured or guaranteed. Conventional, FHA and VA loans can use fixed rates. The market data should not be read as saying that every fixed-rate application is conventional.

Conventional loans also made up the largest program category. Subtracting the survey’s FHA, VA and USDA shares from the total leaves 71.7% for conventional applications. This is a calculation from MBA’s reported shares, and includes both fixed-rate and adjustable-rate loans.

Mortgage Applications Decrease in Latest MBA Weekly Survey (new tab)

ARMs offer a different starting payment, with later adjustment risk

An adjustable-rate mortgage generally holds its initial rate for a specified period, then changes according to its index, margin and contractual caps. Its initial rate can be lower than a comparable fixed-rate loan. That difference makes the starting payment part of the affordability comparison when mortgage rates are high.

Fixed-rate and adjustable-rate mortgages (new tab)

The 10.5% ARM application share shows meaningful use, but not a move away from fixed-rate financing by most borrowers. An initial payment advantage also does not establish a lower lifetime cost.

Mortgage Applications Decrease in Latest MBA Weekly Survey (new tab)

After the initial period, the rate and payment can rise. The first adjustment date, adjustment frequency, caps and maximum payment determine the exposure. A future refinance is a separate transaction, not a guaranteed escape from an adjustment.

Fixed-rate and adjustable-rate mortgages (new tab)

FHA and VA address cash and eligibility needs

FHA accounted for 16.3% of applications and VA for 11.5% in MBA’s week ending October 16 survey. These shares include purchase and refinance activity; they are not a count of first-time buyers.

Mortgage Applications Decrease in Latest MBA Weekly Survey (new tab)

FHA financing can accommodate a smaller down payment. VA financing serves eligible servicemembers, veterans and certain surviving spouses, with program-specific eligibility and cost rules. These features address access to financing and cash needed upfront, alongside the monthly-payment question.

Shopping for a mortgage (new tab) · VA home loan eligibility (new tab)

A lower down payment does not by itself mean a lower total cost. Mortgage insurance, funding fees where applicable, closing costs and the amount borrowed also matter. The survey establishes how much application activity uses each program; it does not establish why every applicant chose it or whether that choice is best for another household.

TransUnion reported HELOC growth in the first quarter

TransUnion reported 560,000 home-equity originations in the first quarter of 2026, up 5.8% from a year earlier. HELOC originations rose 16.8%, while closed-end home-equity loan volume declined. TransUnion attributed HELOC growth to flexible borrowing and homeowners preserving low-rate first mortgages.

More Americans Have Access to Credit While Debt Growth Has Moderated (new tab)

That is a different financing need from buying a home. A homeowner can add an equity loan or credit line behind the first mortgage instead of refinancing the entire existing balance. The first mortgage remains in place, and the household takes on a separate repayment obligation.

Home equity loan and HELOC differences (new tab)

A HELOC allows borrowing against a credit line and usually has a variable rate. Payments can change, and the transition from drawing funds to repaying principal can increase the payment. A closed-end home-equity loan generally provides a lump sum with a defined repayment schedule. Both use the home as collateral; keeping the first mortgage does not eliminate the cost or risk of the new debt.

What is a home equity line of credit (HELOC)? (new tab) · Home equity loan and HELOC differences (new tab)

Refinancing remains active, but the starting loan matters

Refinances represented 39.0% of MBA applications for the week ending October 16. That is a share of applications, not a statement that 39% of homeowners refinanced. The share can change because purchase activity changes as well as because refinance activity changes.

Mortgage Applications Decrease in Latest MBA Weekly Survey (new tab)

TransUnion’s earlier-quarter data illustrates how sensitive activity can be to the rate environment: it reported that refinance activity contributed to increased mortgage originations in the first quarter as borrowers responded to lower rates during that period. That earlier observation should not be presented as this week’s trend.

More Americans Have Access to Credit While Debt Growth Has Moderated (new tab)

The same market rate can create different comparisons. Someone holding an older low-rate mortgage faces the cost of replacing it; someone with a more expensive existing loan starts from a different position. A refinance changes the existing loan, while a second lien generally adds borrowing alongside it.

What the data shows about loan choices

These products offer different tradeoffs. Fixed-rate loans provide payment predictability. ARMs can offer a lower initial rate with later adjustment risk. FHA and VA have distinct eligibility and upfront-cost rules. Equity borrowing can leave an existing first mortgage in place. These features describe what each option does, not why every borrower chose it.

Shopping for a mortgage (new tab) · Fixed-rate and adjustable-rate mortgages (new tab) · Home equity loan and HELOC differences (new tab)

MBA measures recent applications; TransUnion reports earlier completed originations. FHFA separately tracks new and outstanding first mortgages. Those datasets cover different periods and populations, so they cannot be combined into one market-share total. In MBA’s recent snapshot, fixed-rate mortgages remain dominant. Popularity does not establish the right loan for a particular household.

National Mortgage Database Aggregate Statistics (new tab) · Mortgage Applications Decrease in Latest MBA Weekly Survey (new tab)

Market snapshot as of October 22, 2026. The application and origination periods are identified above. These figures describe national activity, not a personalized loan offer.