Mortgage Applications Fall As 30-Year Rate Hits 15-Month High
By CU Today Staff —
WASHINGTON—Mortgage applications fell 2.7% last week as the average rate on a 30-year fixed mortgage climbed to its highest level since June 2025, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.
MBA said its Market Composite Index declined 2.7% on a seasonally adjusted basis for the week ending Sept. 4 and 4% on an unadjusted basis. Refinance applications fell 6% for the week and were 25% below their year-ago level, while seasonally adjusted purchase applications slipped 0.2%. Unadjusted purchase applications declined 3% but remained 4% higher than a year earlier.
“Mortgage rates moved higher last week, driven by ongoing investor concerns over inflation and the federal budget deficit. The 30-year fixed rate increased to 6.85%, the highest since June 2025 and 36 basis points higher than a year ago,” said Joel Kan, MBA’s vice president and deputy chief economist. “Refinance applications remain significantly impacted by these higher rates, falling to the slowest weekly pace since May 2025.”
The average rate for conforming 30-year fixed mortgages increased to 6.85% from 6.79%, while the 15-year fixed rate rose to 6.17% from 6.14%. The rate on FHA-backed 30-year mortgages increased to 6.53% from 6.49%, while the jumbo 30-year rate declined to 6.74% from 6.76%.
Borrowers also showed greater interest in adjustable-rate mortgages, with the ARM share rising to 8.5% of applications, its highest level since June. The refinance share declined to 40.9% from 41.8%, while FHA loans accounted for 17.2% of applications and VA loans 12%.
Originally reported by CU Today.