Mortgage applications jumped in the week ended Sept. 5, rising to their highest pace since 2022 as the rate on a standard 30-year mortgage fell to its lowest level since October 2024, the Mortgage Bankers Association said. 

The MBA’s Market Composite Index, which includes fixed and adjustable-rate purchase and refinance mortgages, climbed 9.2% from the previous week, while the Refinance Index rose 12% week over week, and the Purchase Index climbed 7%. 

“Mortgage rates declined for the second consecutive week as Treasury yields moved lower on data indicating that the labor market is weakening,” MBA Vice President and Deputy Chief Economist Joel Kan said. “The downward rate movement spurred the strongest week of borrower demand since 2022, with both purchase and refinance applications moving higher.  

“Purchase applications increased to the highest level since July and continued to run more than 20% ahead of last year’s pace. There was also a pickup in [adjustable-rate mortgage] applications, both in terms of level and share, as ARM rates were considerably lower than fixed-rate loans, which typically benefits homebuyers.” 

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.49% from 6.64%, while the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.27% from 6.31%.