Mortgage applications slip as ARM share hits 14-month high
Selma Hepp, Chief Economist at Cotality, says growing inventory, increased price reductions, and greater seller flexibility could create opportunities for buyers willing to enter the market during the slower winter months. https://t.co/IxCy2Z0RBm
— Mortgage Professional America Magazine (@MPAMagazineUS) November 3, 2026
Purchase demand stalls despite rate relief
The seasonally adjusted Purchase Index dropped 2% week over week and sat 19% below the same week in 2025, a year-over-year gap that illustrates how thoroughly elevated borrowing costs have winnowed the homebuyer pool.
On an unadjusted basis, purchase applications slid 4% from the prior week.
The 30-year fixed rate on conforming loan balances ($832,750 or less) eased to 7.30% from 7.37%, its lowest reading since September and a consequence of the Federal Reserve’s decision to pause its rate-hiking campaign at its October meeting.
Jumbo rates – for balances above $832,750 – declined to 7.20% from 7.28%, while Federal Housing Administration (FHA)-backed 30-year mortgages fell to 7.02% from 7.12%.
The 15-year fixed bucked the trend, inching to 6.76% from 6.70%.
