Mortgage Applications Increase
In the latest Mortgage Bankers Association (MBA) Weekly Applications Survey, mortgage applications saw a modest increase of 1.4 percent on a seasonally adjusted basis for the week ending September 6, reflecting a continued downward trend in mortgage rates. The 30-year fixed mortgage rate fell to 6.29 percent, marking the lowest level since February 2023. This decline in rates, driven by easing inflation and a cooling job market, has led to a significant 106 percent year-over-year rise in refinance applications. Despite a slight decrease in the unadjusted Purchase Index, the adjusted figures show a 2 percent increase from the previous week, bringing purchase applications closer to last year’s levels.
This data highlights both opportunities and challenges. The lower mortgage rates are likely to stimulate refinancing and potentially boost homebuying activity, although affordability concerns and inventory shortages continue to be barriers. The increased refinance share of total mortgage activity and the slightly higher FHA share indicate that more borrowers are taking advantage of favorable rates. However, with the average contract interest rates for jumbo loans and ARMs also seeing reductions, developers should remain vigilant about market trends and potential shifts in buyer behavior as they plan for the coming months.
