The Mortgage Bankers Association reported on September 23 that the average contract rate on a standard 30-year fixed-rate mortgage rose to 7.12% for the week ending September 18, up from 6.97% the prior week and marking the highest level since May 2024. As borrowing costs have increased, applications for both home purchases and refinancing have continued to decline.

With rates climbing above 7%, mortgage application volumes are still falling. The 7.12% figure in this survey applies to 30-year fixed-rate loans with balances of up to $832,550, reflecting an increase of 15 basis points from the previous week. The average loan points for such loans also edged up to 0.73 from 0.72. Mike Fratantoni, the association’s chief economist, noted that as fixed rates have risen, more borrowers are shifting toward adjustable-rate mortgages, which carry lower initial rates.

On a seasonally adjusted basis, total mortgage application volume fell 1.5% for the week. Refinance applications dropped 3%, while purchase applications declined 1%. The share of adjustable-rate loans climbed to 9.8% of all applications. During the same period, the average contract rate on a 5/1 adjustable-rate mortgage stood at 6.10%.

Different surveys use varying rate measurements. Another widely followed U.S. mortgage rate survey showed the average 30-year fixed mortgage rate at 6.95% as of September 17. Because that survey differs from the Mortgage Bankers Association’s in both sample size and calculation methodology, the two figures should be cited with their respective sources clearly noted. The rate crossing above 7% in this case refers to the average contract rate published by the Mortgage Bankers Association.