Mortgage applications have increased 1.4% for the first week of September, accounting for the Labor Day holiday, according to data from the Mortgage Bankers Association's (MBA) Weekly Applications Survey. On an unadjusted basis, the index decreased 10% from the previous week.

Meanwhile, the firm's refinance index increased 1% week over week but was 106% higher than the same week a year ago. MBA's seasonally adjusted purchase index increased 2% from one week earlier, while the unadjusted purchase index decreased 10% compared with the previous week and was 3% lower than the same week one year ago.

These figures come in as mortgage rates declined for the sixth straight week to 6.29% on a 30-year fixed loan, the lowest rate since February 2023. This is spurring refinance applications, which are running much higher than they were last year but still somewhat limited as many borrowers still have sub-5% rates, the firm noted.