More purchase and refinance applicants are considering ARMs, MBA says

"Mortgage applications decreased 4.7% from one week earlier, according to data from the Mortgage Bankers Association's (MBA) weekly mortgage applications survey for the week ending October 3, 2025. On an unadjusted basis, the index decreased 5% compared with the previous week. The refinance index decreased 8% from the previous week and was 18% higher than the same week one year ago."

"Added Fratantoni, The ARM share increased to 9.5% last week from 8.4% the prior week. Our survey shows 5/1 ARM rates are averaging almost a percentage point below 30-year fixed rates, and this differential is leading more purchase and refinance applicants to consider ARMs. The Federal Housing Administration (FHA) share of total applications increased to 18.5% from 16.8% the week prior, and the U.S. Department of Veterans Affairs (VA) share of total applications increased to 16.3% from 16.2% the week prior."

Mortgage applications declined 4.7% from the prior week and 5% on an unadjusted basis. The refinance index fell 8% week-over-week but remained 18% higher than the same week a year earlier, and the refinance share slipped to 53.3% from 55.0%. Seasonally adjusted purchase activity decreased 1% week-over-week, with unadjusted purchases also down 1% and 14% higher than a year ago. ARM share rose to 9.5% as 5/1 ARM rates averaged about a percentage point below 30-year fixed rates. FHA and VA shares increased, USDA share stayed at 0.4%, 30-year conforming rates edged to 6.43%, and jumbo rates rose to 6.60%.

Read at www.housingwire.com