U.S. Mortgage Applications Surge 29.7% in the September 12 Week
Summary
- Purchase applications rise 2.9% w/w; revival of refinancing loan applications with a 57.7% w/w jump.
- Effective interest rate on 30-year fixed-rate loans falls to 6.55%, the lowest since October, 2024.
- Average loan size posts double-digit rise.
Mortgage applications jumped 29.7% (44.7% y/y) in the week ending September 12, after a rise of 9.2% w/w (27.4% y/y) in the week ending September 5, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. The latest week was the sharpest w/w rise since the 33.2% rise in the week ending January 10. Applications for loans to purchase a house rose 2.9% (19.1% y/y), following a rise of 6.6% (22.0% y/y) in the September 5 week. Applications for loan refinancing jumped 57.7% (69.6% y/y) in the latest week, after a sharp rise of 12.2% (33.6% y/y) in the September 5 week and surpassing the 43.5% weekly rise of the January 10 week.
The effective interest rate on a 30-year fixed-rate loan decreased 11bps to 6.55% in the week ending September 12 from 6.66% in the week ending September 5, the lowest since October 4, 2024 week. The rate on 15-year fixed-rate mortgages dropped 6bps to 5.78% in the latest week from 5.84% in the September 5 week. The rate on 30-year jumbo loans edged up 1bp to 6.59% after dropping 11bps to 6.58% in the September 5 week. The rate on a 5-year ARM dropped 21bps to 5.80% in the week of September 12 from 6.01% in the prior week, and below the recent low of 5.98% reached in the March 14 week.
The share of applications for refinancing an existing loan rose to 59.8% of total applications in the week ending September 12 after rising to 48.8% in the week ending September 5. The adjustable-rate mortgage (ARM) share of activity rose to 12.9% in the September 12 week, after rising to 9.2% in the September 5 week. It is the highest reading since the 12.0% share reached in the November 4, 2022 week.
The average size of a mortgage loan rose 12.7% (14.2% y/y) to $452,000 in the week ending September 12 after a rise of 4.2% (4.3% y/y) to $401,000 in the September 5 week. The average size of a purchase loan rose 3.4% (0.1% y/y) to $438,100 in the September 12 week, after falling 0.6% (-0.3% y/y) to $423,800 in the September 5 week. The average size of a loan to refinance a mortgage jumped 22.3% (29.7% y/y) to $461,300 in the latest week, following a rise of 11.7% (11.7% y/y) to $377,100 in the September 5 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.
Kathleen Stephansen, CBE
AuthorMore in Author Profile »Kathleen Stephansen is a Senior Economist for Haver Analytics and an Independent Trustee for the EQAT/VIP/1290 Trust Funds, encompassing the US mutual funds sponsored by the Equitable Life Insurance Company. She is a former Chief Economist of Huawei Technologies USA, Senior Economic Advisor to the Boston Consulting Group, Chief Economist of the American International Group (AIG) and AIG Asset Management’s Senior Strategist and Global Head of Sovereign Research. Prior to joining AIG in 2010, Kathleen held various positions as Chief Economist or Head of Global Research at Aladdin Capital Holdings, Credit Suisse and Donaldson, Lufkin and Jenrette Securities Corporation.
Kathleen serves on the boards of the Global Interdependence Center (GIC), as Vice-Chair of the GIC College of Central Bankers, is the Treasurer for Economists for Peace and Security (EPS) and is a former board member of the National Association of Business Economics (NABE). She is a member of Chatham House and the Economic Club of New York. She holds an undergraduate degree in economics from the Universite Catholique de Louvain and graduate degrees in economics from the University of New Hampshire (MA) and the London School of Economics (PhD abd).
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