Mortgage Demand For Adjustable-Rate Loans Rises To Highest Since June

According to CNBC, demand for adjustable-rate mortgages rose to 8.5% of all mortgage applications last week from 8% the prior week, the highest level since June, as borrowers looked for lower borrowing costs. The average contract interest rate on 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less increased to 6.85% from 6.79%, while the average rate on a 5-year ARM fell to 5.82% from 5.94%. Total mortgage application volume fell 2.7% for the week, with refinance applications down 6% and purchase applications down 0.2%. Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association, said higher mortgage rates were driven by investor concerns over inflation and the federal budget deficit, and noted that the 30-year fixed rate was the highest since June 2025 and 36 basis points above a year earlier.