ARM share reaches record high as October mortgage locks fall 19%
Purchase loans made up 84% of all locks, while refinance share fell to 16% of total production, down nearly 21 percentage points year over year.
“October’s data show how much affordability is shaping the purchase market,” said Brennan O’Connell, director of data solutions at Optimal Blue.
“ARM share reached another high, FHA gained share and first-time buyers took a larger share across the major agency programs. For lenders, that means the opportunity is increasingly in helping borrowers find the product and payment structure that works for their circumstances.”
Government programs and first-time buyers gain ground
The Optimal Blue Mortgage Market Indices (OBMMI) 30-year conforming fixed rate, the benchmark for CME Group’s Mortgage Rate futures, ended October at 7.15%, down 24 basis points (bps) month over month but up 99 bps year over year.
Federal Housing Administration (FHA) loans priced at 7.00%, while US Department of Veterans Affairs (VA) loans closed the month at 6.76%.
