Mortgage Activity Falls Again Despite Rates Declining to Near Historic Lows

Mortgage Weekly Update

Mortgage applications decreased again this week, dropping 2.0% from this time last week, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.

Despite being 40% higher than this time last year, the refinance index decreased 3% over the last week. The drop prompted this response from Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting:

“Both conventional and government refinancing activity decreased last week, despite 30-year fixed and 15-year fixed mortgage rates declining to near historical lows. Mortgage rates have remained below 3.5 percent for five months now, and it’s possible that refinance demand may be slowing and will not significantly increase again without another notable drop in rates.”

Meanwhile, the adjusted purchase index decreased 3% over the previous week, up only 28% from this time a year ago.

More in mortgage and housing news

  • The Fed recently announced new policies on inflation and employment that could keep interest rates low for the long haul.
  • A new study by LendEDU claims 55% of homeowners regret taking out a mortgage during the pandemic. 
  • A new report from the CFPB was released detailing the early economic effects of the pandemic.

This week in mortgage rates

Rates decreased on 30-year, 15-year, and ARM loans while the FHA rate increased and the rate on jumbo loan balances remained unchanged.

Here’s a closer look at how rates were affected this week:

  • All 30-year, fixed-rate loans: 3.08%, 0.36 points
  • Jumbo 30-year, fixed-rate loans: 3.41%, 0.38 points
  • FHA 30-year, fixed-rate loans: 3.19%, 0.34 points
  • 15-year, fixed-rate loans: 2.67%, 0.36 points
  • 5/1 ARMs: 3.08%, 0.42 points

Check back here next week for the latest mortgage rates.

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By Aly Yale / September 4th, 2020 / Categories: / Tags:

Aly Yale

Aly J. Yale is a freelance writer focusing on real estate, mortgage, and the housing market. Her work has been featured in Forbes, Bankrate, The Motley Fool, Business Insider, The Balance, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from Texas Christian University's Bob Schieffer College of Communication with a major in radio-TV-film and news-editorial journalism. Connect with her at or on Twitter at @AlyJwriter.