Mortgage Applications Rise in the Week Ending September 6th—Third Consecutive Increase

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, September 6th, the Market Composite Index—a measure of mortgage loan application volume—increased 1.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 10.0% compared with the previous week.

The Refinance Index increased 1.0% from the previous week and was 106.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index increased 2.0% compared to one week ago. The unadjusted Purchase Index decreased 10.0% compared with the previous week and was 3.0% lower than the same week one year ago.

Commenting on the results of this week’s survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage rates declined for the sixth consecutive week, with the 30-year fixed rate decreasing to 6.29%, the lowest rate since February 2023. Treasury yields have been responding to data showing a picture of cooling inflation, a slowing job market, and the anticipated first rate cut from the Federal Reserve later this month. With rates almost a full percentage point lower than a year ago, refinance applications continue to run much higher than last year’s pace. However, there is still somewhat limited refinance potential as many borrowers still have sub-5% rates. It is a positive development that there are homeowners who can benefit from a refinance as rates continues to move lower.

Purchase applications increased over the week and are edging closer to last year’s levels. Despite the drop-in rates, affordability challenges and other factors such as limited inventory might still be hindering purchase decisions.”