Mortgage application activity slowed again for the week ending Sept. 4, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, decreased 2.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index was down by 4%.
The seasonally adjusted Purchase Index dipped by a scant 0.2% from one week earlier while the unadjusted index dropped by 3% over the same period – the latter was also 4% higher than the same week one year ago.
The Refinance Index fell 6% from the previous week and was 25% lower than the same week one year ago. The refinance share of mortgage activity decreased to 40.9% of total applications from 41.8% one week earlier.
Among the federal programs, the FHA share of total applications increased to 17.2% from 15.9% the week prior while the VA share of total applications decreased to 12.0% from 13.6% and the USDA share of total applications remained unchanged at 0.5% from the week prior.
Joel Kan, MBA’s vice president and deputy chief economist, blamed the elevated level of mortgage rates for the slowdown. Kan observed, “Refinance applications remain significantly impacted by these higher rates, falling to the slowest weekly pace since May 2025. Purchase applications overall were little changed from last week, but more borrowers have shifted to using ARM loans, with the ARM share of applications at 8.5%, the highest share since June. Higher mortgage rates continue to weigh on prospective homebuyers looking to act, even as housing inventory has increased in many markets.”
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