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Mortgage Rates Slip to 6.37% as Refinances Climb and ARMs Gain Share

Borrowers pivot toward lower-cost options, with FHA activity rising and VA refinances declining.

Overview

  • Applications to refinance rose 4% from the prior week and were 81% higher than a year earlier, according to MBA data for the week ending Oct. 17.
  • The refinance share of total applications increased to 55.9% from 53.6% as conventional refis rose 6% and FHA refis climbed 12%, while VA refis fell 12%.
  • Purchase applications declined 5% week over week but were 20% above the same week last year.
  • Adjustable-rate activity jumped 16%, lifting ARMs to an 11% share, with the tracked 5/1 rate at 5.55%—more than 80 basis points below the 30-year fixed.
  • Borrowing costs eased across loan types, including FHA at 6.12%, 15-year fixed at 5.74%, and jumbo at 6.39%, as the 30-year conforming average ticked down to 6.37%.