U.S. Mortgage Applications Rebound 9.2% in the September 5 Week
Summary
- Purchase applications +6.6% w/w; refinancing loan applications +12.2% w/w.
- Effective interest rate on 30-year fixed-rate loans falls to 6.66%, the lowest since October.
- Average loan size rises to the highest level since the April 11 week.
Mortgage applications rose 9.2% w/w (27.4% y/y) in the week ending September 5 after a 1.2% decline in the week ending August 29, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. The latest reading was the first w/w rise in four weeks, to the index level of 297.7, the highest since the week of July 8, 2022. Applications for loans to purchase a house grew 6.6% (22.0% y/y) in the September 5 week, the fifth w/w increase in six weeks, reversing a 3.1% drop in the previous week. Applications for loan refinancing jumped 12.2% (33.6% y/y) in the September 5 week following a 0.9% rise in the August 29 week and two consecutive w/w declines.
The effective interest rate on a 30-year fixed-rate loan decreased 15bps to 6.66% in the week ending September 5, the lowest since the October 4, 2024 week, after edging down to 6.81% in the week ending August 29; it was up from a low of 6.29% in the week of September 20, 2024 but down from a peak of 8.12% in the week of October 20, 2023. The rate on 15-year fixed-rate mortgages dropped 20bps to 5.84% in the September 5 week, the lowest since the September 27, 2024 week, after declining to 6.04% in the previous week; it was up from a low of 5.60% in the week of September 20, 2024 but down from a high of 7.44% in the week of October 27, 2023. The rate on 30-year jumbo loans fell 11bps to 6.58% in the September 5 week after falling to 6.69% in the prior week, registering the lowest rate since 6.57% in the week of September 13, 2024 but below a high of 7.99% in the week of October 27, 2023. The rate on a 5-year ARM eased 2bps to 6.01% in the September 5 week, the lowest since March 14 week, after decreasing to 6.03% in the previous week; it was above a low of 5.84% in the week of September 13, 2024 but below a high of 7.31% in the week of October 27, 2023.
The share of applications for refinancing an existing loan rose to 48.8% of total applications in the week ending September 5 after rising to 46.9% in the week ending August 29, marking the highest reading since October 4, 2024; however, those numbers remained below a peak of 55.7% in the week of September 20, 2024. The adjustable-rate mortgage (ARM) share of activity rose to 9.2% in the September 5 week, the highest reading since the August 8 week, after increasing to 8.8% in the prior week; it was up from a low of 4.7% in the January 3 week but below its recent high of 9.6% in the April 11 week and a high of 10.7% in the week of October 27, 2023.
The average size of a mortgage loan rose 4.2% w/w (4.3% y/y) to $401,000 in the September 5 week, the highest level since the April 11 week, following a 0.5% rebound to $384,800 in the August 29 week. The average size of a purchase loan fell 0.6% (-0.3% y/y) to $423,800 in the September 5 week, the lowest level since the January 10 week, after a 1.6% fall to $426,400 in the prior week. The average size of a loan to refinance a mortgage advanced 11.7% (11.7% y/y) to $377,100 in the September 5 week, the highest level since the April 4 week, on top of a 4.8% rebound to $337,700 in the previous week.
The Mortgage Bankers Association Survey covers 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. The base period and value for all indexes is March 16, 1990=100. The figures for weekly mortgage applications and interest rates are available in Haver’s SURVEYS database.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
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