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Mortgage Demand Drops Despite Rates Falling For Third Week

  • November 4th

by UrbanTurf Staff

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Mortgage demand slid again last week, even as interest rates fell. 

Total mortgage application volume fell 1.2% week over week, according to the Mortgage Bankers Association. The average rate on a 30-year fixed loan dropped to 7.3% from 7.37%, the third straight weekly decline and the lowest level since September. However, the dip was not enough to brung buyers back.

Purchase applications slipped 2% and sit 19% below where they were a year ago, as the housing market remains stuck after September’s sharp jump in rates. Refinancing was essentially flat, up just 0.1% for the week and 60% below last year’s level. With rates still roughly a full percentage point higher than a year ago, most homeowners have little reason to refinance.

One notable shift is that more buyers are turning to adjustable-rate mortgages (ARMs) to bring down their initial payments. The average rate on a 5/1 ARM fell to 6.29% from 6.41%, and the ARM share of applications is now the highest since September 2025. The trade-off is the risk that payments reset higher down the road.

See other articles related to: mortgage demand

This article originally published at https://dc.urbanturf.com/articles/blog/mortgage_demand_drops_despite_rates_falling_for_third_week/25163.

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