Mortgage Rates Continue To Weigh on Applications Following Fed Rate Hike

Mortgage applications fell again last week following a Federal Reserve interest rate hike that put a chill on the market, according to the Mortgage Bankers Association.For the week ending Sept. 18, MBA's Market Composite Index—a measure of total mortgage loan application volume—fell 1.5% on a seasonally adjusted basis from one week earlier.The seasonally adjusted Purchase Index, which measures the volume of mortgage applications to purchase a single-family home, decreased 1% from one week earlier. Purchase applications were down 11% from a year ago. The refinancing index also declined 3% for the week and was 62% lower than the same week one year ago."With this week’s decline, the pace of refinancing fell to its slowest pace since February 2025," said Mike Fratantoni, MBA’s senior vice president and chief economist. Last Wednesday, the Federal Reserve voted unanimously to raise interest rates by a quarter-percentage point from 3.75% to 4%."The plain fact is that inflation is too high and has been for too long," Fed Chairman Kevin Warsh said following the vote. "The committee’s unanimous vote shows our resolve to achieve price stability on a timelier basis."Last week, mortgage rates ...