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US 30-year mortgage rate rises to 6.85%
Hindustan Times··9 Sept
The average US 30-year fixed mortgage rate rose to 6.85% last week from 6.79% the week before, the Mortgage Bankers Association said. Total mortgage applications fell 2.7%, and refinance applications dropped 6%. Adjustable-rate mortgages made up 8.5% of applications, up from 8% the prior week. The average 5-year ARM rate fell to 5.82% from 5.94%.
Prism
What It Means For You
- Borrowers saw the highest 30-year fixed average since June 2025, 36 basis points above a year ago.
- Purchase applications fell only 0.2% week on week but remained 4% above the same week last year.
- Refinance volume was the slowest since May 2025 and 25% below a year earlier.
What's Happening
- MBA's Joel Kan linked higher rates to investor worries about inflation and the federal budget deficit.
- The 30-year figure covered conforming balances of $832,750 or less with a 20% down payment.
- Average points rose to 0.67 from 0.65, including the origination fee.
Why ARMs Are Rising Again
- ARM share is at its highest since June and far above the roughly 3% seen in early pandemic years.
- A 5-year ARM at 5.82% starts below the 6.85% 30-year fixed average.
- Mortgage News Daily said rates were unchanged early this week ahead of fresh inflation data.
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