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Mortgage applications fall as 30-year fixed rate tops 7%
The MBA said the refinance index dropped 3% week over week, while the ARM share of applications rose to 9.8%.
HousingWire reports that the Mortgage Bankers Association’s weekly mortgage application survey for the week ending Sept. 18, 2026 showed overall applications fell 1.5% as the 30-year fixed rate climbed to 7.12%. The MBA also cited a Labor Day holiday adjustment in the prior week’s comparison.
According to the MBA data, refinance applications decreased 3% week over week, and were 62% lower than the same week a year earlier. Purchase applications edged down 1% on a seasonally adjusted basis, while the unadjusted purchase index increased 9% versus the prior week.
The shift away from fixed-rate borrowing was reflected in the product mix, with the ARM share rising to 9.8% of total applications. MBA’s senior vice president and chief economist Mike Fratantoni said more borrowers chose ARMs because rates for 5/1 ARMs were more than a percentage point lower than fixed-rate loans, and that refinancing slowed to its slowest pace since February 2025.
HousingWire also notes changes across government-backed and other categories: the FHA share fell to 16.7%, the VA share decreased to 12%, and the USDA share rose to 0.6%. Average rates increased for conforming 30-year fixed loans to 7.12%, while 5/1 ARMs were the only product category to see rates fall, dropping 13 bps to 6.10%.