Mortgage Applications Dip 4% as Rates Climb Near 7%
Refinance demand fell 9% and purchase applications dropped 1% as higher rates erased much of the savings for borrowers, the MBA said.
- Mortgage applications decreased 4.1% for the week ending Sept. 11, as the average contract rate for a 30-year fixed mortgage climbed to 6.97%, the highest level since May 2025, according to the Mortgage Bankers Association.
- Ongoing market concerns over spiking energy prices, persistently high inflation, and future monetary policy pushed bond yields higher last week, with mortgage rates following the 10-year Treasury toward 7%, said Joel Kan, MBA's vice president and deputy chief economist.
- The refinance share of mortgage activity decreased to 39.4% of total applications, while the unadjusted Purchase Index fell 13% from the previous week and 19% lower than a year earlier.
- Xactus's Mortgage Intent Index declined approximately 15% from the previous week as Thomas Lloyd, the firm's chief strategy officer, cited holiday timing and elevated rates as significant headwinds.
- Elevated borrowing costs are weighing on housing activity, yet the median existing-home price rose 1.6 percent from a year earlier to $429,100, marking the highest level on record for an August, according to the National Association of Realtors.
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11 Articles
Mortgage Applications Fall 4.1% as the MBA 30-Year Rate Reaches 6.97%
The MBA’s 30-year contract rate rose 12 basis points to 6.97%, while total applications fell 4.1%. Purchase demand is now 19% below last year and refinancing is down 65%, a sharper warning than the rate alone. U.S. mortgage applications fell 4.1% in the week ended Sept. 11 as the average contract rate for a conforming…
As borrowing costs climb to their highest level since May 2025, both homebuying and refinancing demand in the United States are weakening. Rapidly rising mortgage rates are prompting both potential homebuyers and homeowners seeking refinancing to wait and see.
Homebuyers Pausing Purchases as Rates Continue to Climb
Homebuyers and owners looking to refinance pushed the pause button again this week as rates soared over 7%, a move economists attribute to ongoing economic uncertainty and geopolitical forces, namely the continuing conflict in the Middle East. The latest Market Composite Index from the Mortgage Bankers Association (MBA)—its measure of mortgage loan activity volume and…
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