US mortgage applications declined by 1.2% in the week ended October 30, following a 3.4% increase in the prior week, despite a modest easing in borrowing costs. The average rate on 30-year fixed-rate mortgages with conforming loan balances fell to 7.30% from 7.37%, marking its lowest level since September 2026 after the Federal Reserve opted to leave interest rates unchanged in October.
The slight drop in rates did not translate into stronger demand. Applications for home purchase loans decreased by 2% from the previous week, while refinancing activity was essentially flat, edging up just 0.1%.
At the same time, borrowers continued to favor adjustable-rate mortgages (ARMs) in an effort to secure lower initial monthly payments. The average rate on 5/1 ARMs slipped to 6.29% from 6.41%, and the share of mortgage applications involving these products rose to its highest level since September 2025.
