Mortgage Applications Rise 3.4% as ARM Share Jumps to 11.3%
Updated
Updated · CNBC · Oct 28
Mortgage Applications Rise 3.4% as ARM Share Jumps to 11.3%
2 articles · Updated · CNBC · Oct 28
Summary
Total mortgage applications rose 3.4% last week after the average 30-year fixed rate fell to 7.37% from 7.41%, marking a second straight weekly decline.
ARM demand climbed faster as borrowers chased lower payments: adjustable-rate mortgages took 11.3% of applications, the highest share in more than a year, while the average 5/1 ARM rate slipped to 6.41%.
Purchase applications increased 4% and refinance applications rose 3%, but both remained well below year-earlier levels—down 18% and 61%, respectively.
Higher borrowing costs still constrain the market because mortgage rates remain more than 1 percentage point above a year ago, while about half of borrowers already hold loans below 4%.
Rates were flat at the start of this week, with markets awaiting Wednesday's Federal Reserve decision and any comments from Chair Kevin Warsh.