Mortgage Rates Jump To Highest Level Since May 2024, Apps Impacted
By CU Today Staff —
WASHINGTON—Mortgage applications declined 1.5% from the previous week as the average rate on a 30-year fixed mortgage climbed to 7.12%, its highest level since May 2024, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Sept. 18.
MBA said its seasonally adjusted Market Composite Index fell 1.5%, while the Refinance Index declined 3% and was 62% below the same week a year ago. The seasonally adjusted Purchase Index fell 1%, while the unadjusted Purchase Index was 11% lower than a year earlier. The previous week’s results included an adjustment for the Labor Day holiday.
“Mortgage rates vaulted higher last week, with the 30-year fixed rate at 7.12% – the highest level since May 2024. With fixed rates much higher, more borrowers opted for ARMs, with the ARM share reaching 9.8%, as rates for 5/1 ARMs were more than a percentage point lower than those for fixed rate loans,” said Mike Fratantoni, MBA’s SVP and chief economist. “Applications for both refinance and purchase loans declined further last week, noting that the comparison is to the week that included the Labor Day holiday. With this week’s decline, the pace of refinancing fell to its slowest pace since February 2025.”
The refinance share of mortgage activity edged down to 39.3% from 39.4%, while the adjustable-rate mortgage share increased to 9.8%. The FHA share declined to 16.7% from 16.9%, the VA share fell to 12% from 12.4%, and the USDA share increased to 0.6% from 0.4%.
MBA said the average contract rate for conforming 30-year fixed mortgages rose to 7.12% from 6.97%, while the jumbo rate increased to 7.15% from 7.03%. The FHA 30-year rate climbed to 6.78% from 6.62% and the 15-year fixed rate increased to 6.43% from 6.30%. In contrast, the average rate for 5/1 ARMs declined to 6.10% from 6.23%.
Originally reported by CU Today.