# U.S. Adjustable-Rate Mortgage Share Reaches 10.5%, Highest Since October

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/31731
Published: 2026-10-14T11:10:14.000Z
Updated: 2026-10-14T11:10:14.000Z
Section: Business

> The average rate for a 30-year fixed mortgage with a conforming balance rose to 7.50% from 7.49% as total applications fell 2.75%.

U.S. mortgage applications declined last week as the average contract rate for a 30-year fixed mortgage rose, while adjustable-rate mortgages (ARMs) reached their largest share of applications since October 2025.

ARMs accounted for 10.5% of applications. The average contract rate for a 30-year fixed mortgage with a conforming balance of $832,750 or less increased to 7.50% from 7.49%, more than a percentage point above its level a year earlier.

Total application volume fell 2.75% from the prior week and was 37.5% lower than in the same week last year. Applications to purchase homes dropped 4% week over week and 16% year over year. Refinancing applications declined 0.4% for the week and 56% from a year earlier.

ARMs offer lower initial interest rates that can remain fixed for up to 10 years before adjusting with future interest rates.

Home sales edged up in August from July, while available inventory increased as sales slowed rather than because of new listings. Home prices continued to rise. August sales reflected summer market conditions, when mortgage rates were lower; subsequent rate increases mean fewer buyers can qualify for a home purchase.