ARM Mortgage Demand Jumps to 8.5% as Fixed Rates Hit 14-Month High

Adjustable-rate mortgages (ARMs) accounted for 8.5% of mortgage applications last week, their highest share since June, rising from 8% the previous week. The average rate for a 5-year ARM fell to 5.82% from 5.94% as the average 30-year fixed-rate rose to 6.85%, up from 6.79%. Mortgage applications overall declined by 2.7%, mainly due to a 6% drop in refinance applications, which are 25% lower than last year. Higher fixed mortgage rates continue to impact prospective homebuyers, and this trend could influence housing market dynamics for investors.