Homeowners who locked in low rates years ago have largely stopped asking about refinancing. What they are asking about now is how to borrow against the house without touching that first mortgage, and the latest rate readings show the backdrop that question is being asked against.
Chart: RateZip · Source: lender-posted rates tracked daily by RateZip.
The average 30-year fixed mortgage rate rose to 6.71% in the week ending September 3, up from 6.66% a week earlier, according to Freddie Mac's weekly survey. "Mortgage rates reached their highest levels in four weeks as investors’ concerns about inflation and growing deficits push yields higher across the globe," Mike Fratantoni, SVP and chief economist at the Mortgage Bankers Association, said in a statement Friday.
Refinancing fades, equity borrowing takes over
Refinance applications fell 1% last week and sat 19% below a year earlier, even as purchase applications rose 2%, according to RISMedia's coverage of the MBA's weekly survey, which also put the adjustable-rate share of applications at 8%.
The shift is starker in RateZip's own Mortgage Demand Index, built from the mortgage inquiries consumers submit across its network. Over the three months through August, home-equity products, meaning HELOCs plus reverse mortgages, accounted for 76% of inquiries, up from 43% in the same months a year earlier. Refinancing went from 39% of the mix to 2%. Total inquiry volume in August ran 11% higher than July and 157% higher than August 2025.
The borrowers behind those numbers are not asking for the traditional product. "Recently, borrowers have started asking about short fixed-term equity products, like a 10- or 15-year HELOAN. There has been more hesitation in home buyers who haven't signed a contract, as the Fed signals rate cuts are very unlikely. The volume of folks who want to tap their equity with a 2nd mortgage continues to increase week over week," said Paul Knag, RateZip's founder.
LeeAnn Reynolds, a licensed loan originator at RateZip, hears the same thing from the front line. "The most common question I get is 'Is my credit OK for a HELOC?' Rates have been drifting up with no hope of dropping — this is causing people to give up. It's surprising how many people want shorter fixed terms and don't want the traditional interest-only product," she said.
What lenders are posting Monday
The eight lenders RateZip tracks left all 27 posted rates unchanged Monday morning. The only HELOC in the set, from FourLeaf Federal Credit Union, is posted at 6.75%. On the first-mortgage side, the cheapest posted 30-year fixed is AmeriSave at 5.75% and the most expensive is Rocket Mortgage at 6.875%, a 1.125-point gap that works out to roughly $293 a month on a $400,000 loan. Over the past week the biggest move among tracked products was U.S. Bank's 7/6 ARM, up 0.375 points.
Eyes on the Fed
The next signal comes from Washington. Fed Governor Christopher Waller said September 3 that inflation remains well above the 2% goal but recent data show early signs of disinflation, and that he would lean toward holding the policy rate at the September 15-16 meeting if that continues, according to the Federal Reserve Board. He added that a hike could be appropriate if August data reverse those signs. For homeowners weighing a second mortgage against waiting for a cheaper first one, that meeting is the next date on the calendar.
Today's posted rates: the full table
| Lender | 30-Yr | 15-Yr | 20-Yr | FHA 30-Yr | VA 30-Yr | Jumbo 30-Yr | 7/6 ARM | HELOC |
|---|---|---|---|---|---|---|---|---|
| AmeriSave | 5.75% / 6.235% | 4.875% / 5.679% | — | — | — | — | — | — |
| New American Funding | 6.625% / 6.74% | 6.125% / 6.316% | — | 6.25% / 7.287% | 6.25% / 6.681% | — | — | — |
| Rocket Mortgage | 6.875% / 7.167% | 6.125% / 6.564% | — | — | — | — | — | — |
| Wells Fargo | 6.75% / 6.884% | 6% / 6.252% | — | — | 6.125% / 6.364% | — | 6.375% / 6.542% | — |
| U.S. Bank | 6.75% / 6.919% | 6.25% / 6.491% | 6.49% / 6.706% | 6.625% / 7.531% | 6.5% / 6.867% | 7% / 7.186% | 6.5% / 6.617% | — |
| Bank of America | 6.875% / 7.116% | 6.125% / 6.519% | 6.75% / 7.055% | — | — | — | 6.25% / 6.525% | — |
| Veterans United | — | — | — | — | 5.99% / 6.448% | — | — | — |
| FourLeaf Federal Credit Union | — | — | — | — | — | — | — | 6.75% / 6.75% |
Rates are each lender's own published rate as of 9:50 a.m. ET, collected from their public rate pages and feeds. The APR is the better cross-lender comparison; a figure in parentheses is today's change; a '—' means the lender doesn't post that product. How we collect and publish this: our rate methodology.
Source: Freddie Mac Primary Mortgage Market Survey via FRED®, Federal Reserve Bank of St. Louis.