Higher Rates Drive Borrowers Toward ARMs as Refis Fade

Mortgage rates climbed to 6.79% for 30-year fixed conforming loans and 5/1 ARMs slipped to 5.94%, while total mortgage applications rose 0.8% week over week. Purchase applications edged up about 2% but remained slightly below a year ago, refinances fell 1% and were down 19% year over year, and ARM share rebounded to 8%—its highest in five weeks—as borrowers gravitate toward riskier loans to lock in lower initial payments amid higher rates.