Mortgage application volume increased 1.4% during the week ended September 6, as the average rate for a 30-year fixed-rate mortgage with a conforming loan balance fell to 6.29%, down from 6.43% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
The results include an adjustment for the Labor Day holiday.
Applications for refinances increased 1% compared with the previous week and were 106% percent higher compared with the same week one year ago.
Applications for purchases increased 2% compared with the previous week but were down 3% compared with the same week one year ago.
“Mortgage rates declined for the sixth consecutive week, with the 30-year fixed rate decreasing to 6.29 percent, the lowest rate since February 2023,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “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,” Kan says. “However, there is still somewhat limited refinance potential as many borrowers still have sub-5 percent 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,” he adds. “Despite the drop in rates, affordability challenges and other factors such as limited inventory might still be hindering purchase decisions.”
The refinance share of mortgage activity increased to 46.7% of total applications, up from 46.4% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 5.4% of total applications.
Photo: Romain Dancre