Mortgage rates soar to 6.85% as ARM demand reaches summer high
Total mortgage application volume fell 2.7% for the week ending September 4, as the 30-year fixed rate climbed to its highest point since June 2025. That drove a notable shift toward adjustable-rate products among cost-sensitive borrowers, according to data released Wednesday by the Mortgage Bankers Association (MBA).
“Mortgage rates moved higher last week, driven by ongoing investor concerns over inflation and the federal budget deficit. The 30-year fixed rate increased to 6.85%, the highest since June 2025 and 36 basis points higher than a year ago,” said Joel Kan, CMB, MBA’s Vice President and Deputy Chief Economist.
ARM share climbs to highest level since June
With conforming 30-year costs elevated, demand for adjustable-rate mortgages (ARMs) climbed to 8.5% of total applications, the highest share since June.
