Mortgage applications slip again as rates reach 6.85%

Mortgage applications decreased 2.7% from one week earlier, according to data from the Mortgage Bankers Association (MBA)’s weekly mortgage applications survey for the week ending Sept. 4. On an unadjusted basis, the index decreased 4% compared with the previous week. The refinance index decreased 6% from the previous week and was 25% lower than the same week one year ago. The seasonally adjusted purchase index decreased 0.2% from one week earlier, while the unadjusted purchase index decreased 3% compared with the previous week and was 4% higher than the same week one year ago. “Mortgage rates moved higher last week, driven by ongoing investor concerns over inflation and the federal budget deficit. The 30-year fixed rate increased to 6.85%, the highest since June 2025 and 36 basis points higher than a year ago,” said Joel Kan MBA’s vice president and deputy chief economist. “Refinance applications remain significantly impacted by these higher rates, falling to the slowest weekly pace since May 2025.” “Purchase applications overall were little changed from last week, but more borrowers have shifted to using ARM loans, with the ARM share of applications at 8.5%, the highest share sin...