ARM Share Nears 10% as 30-Year Mortgage Rate Hits 6.56%
Updated
Updated · CNBC · May 20
ARM Share Nears 10% as 30-Year Mortgage Rate Hits 6.56%
2 articles · Updated · CNBC · May 20
Nearly 10% of mortgage applications last week went to adjustable-rate loans, the highest share since October 2025, as borrowers sought lower initial rates.
The shift came as the average 30-year fixed rate rose to 6.56% from 6.46%—a seven-week high—while the average five-year ARM rate stood at 5.76%.
Total application volume fell 2.3% to a five-week low, with purchase applications down 4% and refinance demand slipping 0.1%.
MBA said higher Treasury yields, driven by fuel-linked inflation worries and concerns over global public debt, pushed mortgage costs higher; Mortgage News Daily said rates climbed further this week to the highest since last July.
Beyond oil prices, what hidden factors are now driving mortgage rates to new highs?
Are today's popular adjustable-rate mortgages a smart financial tool or a ticking time bomb?
Is the booming AI industry secretly making it harder for you to afford a home?