Overview
- The Mortgage Bankers Association reported a 3.4% rise in total mortgage application volume for the week ending Oct. 23, the first weekly gain in nearly two months.
- Freddie Mac said the average 30‑year fixed rate fell for a second straight week to 7.24%, bringing only small relief to borrowers who face rates more than a percentage point above last year.
- Purchase applications remain about 18% below the same week last year and refinance requests are roughly 61% lower, constrained by many homeowners holding pandemic‑era loans with rates below 4%.
- Borrowers are shifting toward adjustable‑rate mortgages, with the ARM share of applications rising to 11.3% and the average 5/1 ARM rate down to about 6.41% as shoppers seek lower initial monthly payments.
- Markets and mortgage pricing are being driven by the Iran war, moves in the 10‑year Treasury yield and a wider-than-normal roughly 225 basis point spread between Treasurys and mortgage rates, and the Fed’s pause leaves a possible December hike still priced in.