US Mortgage Applications Rise Nearly 10 Percent to 3-Year High

The 30-year fixed mortgage rate decreased to 6.49 percent last week, marking its lowest level since October 2024, according to the Mortgage Bankers Association.

Amid still-high mortgage rates and near record-high home prices, there’s a silver lining if you own a home. Pla2na/Shutterstock

In what could be promising news for potential homeowners, a Sept. 10 report from the Mortgage Bankers Association (MBA) shows that U.S. national mortgage applications rose to a three-year high last week, as mortgage rates fell to an 11-month low.

The MBA reported a 9.2 percent rise in weekly mortgage applications nationwide, as 30-year fixed mortgage rates dipped to 6.49 percent for the week ended Sept. 5.

“Mortgage rates declined for the second consecutive week as Treasury yields moved lower on data indicating that the labor market is weakening. The 30-year fixed is down 20 basis points over the past two weeks to the lowest since October 2024,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.

“The downward rate movement spurred the strongest week of borrower demand since 2022, with both purchase and refinance applications moving higher.”

In addition to last week’s interest drop from 6.64 percent in the prior week, home-purchase applications jumped to their highest level since July, Kan noted, which is 20 percent ahead of 2024.

Fixed-rate, 30-year mortgages with conforming loan balances—$806,500 or less—also experienced a drop in points from 0.59 to 0.56 for 80 percent loan-to-value (LTV) loans.

Mortgage rates for jumbo loans—those above $806,500—also saw a decrease in rates, from 6.58 to 6.44 percent. However, points increased from 0.39 to 0.48 for 80 percent LTV loans.

Some states have instituted limits on jumbo loans, as these loans are so large that they go beyond the conforming loan limit, which is the maximum amount that’s still eligible for purchase by Fannie Mae and Freddie Mac. According to Bankrate, these limits are set by the Federal Housing Finance Agency and differ depending on the location of the property.

Adjustable-rate mortgages (ARMs) also experienced lower rates last week. For 5/1 ARMs, the rates dropped from 5.9 to 5.77 percent, with points rising from 0.34 to 0.63 for 80 percent LTV loans.

The ARM share of activity increased to 9.2 percent of total applications last week.

BankRate identifies 5/1 ARMs as loans that offer an initial fixed rate period of five years, after which the rate adjusts yearly depending on the current market rates. These loans do have rate caps and are most popular among those who plan to sell or refinance their homes before the end of the initial five-year period.

Meanwhile, home refinance loans made a strong comeback.

“Refinance applications accounted for almost 49 percent of all applications last week,” Kan noted. “The holiday-adjusted refinance index had its strongest week in a year, and the average loan size for refinances also increased significantly.”

The Refinance Index increased by 12 percent from the previous week and was 34 percent higher than the same week one year ago.

Federal Housing Administration (FHA) loan activity indicated a slight decrease from 19.9 percent the prior week to 18.5 percent last week. Meanwhile, Veterans Administration (VA) loan applications saw an uptick from 13.8 percent to 15.3 percent last week.

FHA-backed 30-year, fixed-rate loans saw a decrease from 6.31 to 6.27 percent, with points also declining to 0.68 from 0.74 for 80 percent LTV loans.

Department of Agriculture loan applications increased slightly from 0.5 to 0.6 percent.

These loans typically apply to a smaller population and are designed to help low and very-low-income applicants in eligible rural areas obtain housing loans. To qualify, applicants must have an adjusted income that is at or below the applicable low-income limit for their geographic area. The loans offer payment assistance to reduce the mortgage payments for a limited time.

Those choosing 15-year fixed-rate mortgages can take advantage of rates under 6 percent. Last week’s average rate decreased to 5.7 percent from 5.84 percent a week earlier. Points also dropped significantly from 0.84 to 0.55, including the origination fee, for 80 percent LTV loans.

The August 2025 report from the National Association of Realtors showed America’s median home price at $422,400—up 2 percent from 2024 and the 25th consecutive month of year-over-year price increases.

The MBA survey covers closed-end national residential mortgage applications originated through retail and consumer direct channels, with respondents including mortgage bankers, commercial banks, thrifts, and credit unions.