Mortgage demand slips again as rates push past 7%

Mortgage applications decreased 1.5% from one week earlier as rates rose above 7%, according to data from the Mortgage Bankers Association (MBA)’s weekly mortgage applications survey for the week ending Sept. 18. The trade group confirmed that last week’s results included an adjustment for the Labor Day holiday. On an unadjusted basis, the index increased 9% compared with the previous week. The refinance index decreased 3% from the previous week and was 62% lower than the same week one year ago. The seasonally adjusted purchase index also saw a decrease, inching down 1% from one week earlier. The unadjusted purchase index, however, increased 9% compared with the previous week and was 11% lower than the same week one year ago. “Mortgage rates vaulted higher last week, with the 30-year fixed rate at 7.12% — the highest level since May 2024. With fixed rates much higher, more borrowers opted for ARMs, with the ARM share reaching 9.8%, as rates for 5/1 ARMs were more than a percentage point lower than those for fixed rate loans,” Mike Fratantoni, MBA’s senior vice president and chief economist, said in a statement. “Applications for both refinance and purchase loans declined further la...