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Nearly 10% of borrowers opted for riskier mortgages last week
CNBC • • general
Key Points:
- Mortgage rates hit their highest level since 2024 last week, with the average 30-year fixed-rate mortgage rising to 7.12%, leading to a 1.5% decline in total loan application volume.
- Refinancing applications dropped 3% for the week and are 62% lower than the same period last year, reaching their lowest level since February 2025 due to significantly higher rates compared to the previous year.
- Mortgage purchase applications fell 1% weekly and 11% year-over-year, as higher rates are causing a sharp slowdown in the traditionally busy fall housing market.
- Borrowers are increasingly opting for adjustable-rate mortgages (ARMs), with the ARM share rising to 9.8% from 8.4%, as ARM rates are more than a percentage point lower than fixed rates.
- Mortgage rates eased slightly at the start of this week, influenced by falling oil prices and lower bond yields.
