Homeowners are asking a different question this fall. Not whether to swap out the mortgage they already have, but how to borrow against the house without touching it.
Refinance requests shrank to 2% of the mortgage inquiries submitted across RateZip’s network over the three months through August 2026, down from 39% in the same months a year earlier, according to RateZip’s Mortgage Demand Index. Home-equity products, HELOCs plus reverse mortgages, took 76% of the mix, up from 43%. Overall inquiry volume in August ran 11% above July and 157% above August 2025.
The national picture points the same direction. The MBA’s weekly survey showed its refinance index down 1% for the week ending Aug. 28 and about 19% below a year earlier, while purchase applications rose 2% week over week, according to Scotsman Guide. The refinance share of applications slipped to 41.8%, RISMedia reported, and the ARM share rose to 8%, its highest in five weeks.
Rates keep drifting higher
Freddie Mac’s Primary Mortgage Market Survey put the average 30-year fixed rate at 6.66% in the week ending August 27, up from 6.65% a week earlier. The 10-year Treasury yield, the benchmark long-term mortgage pricing most closely tracks, closed at 4.79% on Tuesday, September 1, per FRED, up 15 basis points over the past week. The MBA’s chief economist attributed higher borrowing costs to investor concern about inflation and deficits, RISMedia reported.
Posted rates moved again Thursday. U.S. Bank raised its 7/6 ARM to 6.5%, its fourth increase in the past three weeks; the ARM is up 0.375 points over that stretch. U.S. Bank also lifted its 15-year fixed to 6.25%, and AmeriSave moved its 15-year fixed to 4.875%. No lender in RateZip’s tracked set changed its posted 30-year rate, and the gap between the cheapest and most expensive stands at 1.125 points, AmeriSave at 5.75% versus Rocket Mortgage at 6.875%, worth about $293 a month on a $400,000 loan. For those looking at a second lien, FourLeaf Federal Credit Union posts a HELOC at 6.75%.
What borrowers are asking for
“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 on the phone. “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.”
Buyers have more to choose from
For buyers still in the market, supply is building. Redfin reported new listings rose 2.1% week over week in the four weeks ending Aug. 30 to a four-year high, while pending sales were roughly flat at their lowest level since February, according to Redfin via PR Newswire.
“Sellers may start to get more desperate in September and subsequent months when mortgage rates are likely to remain higher than they were at this time in 2025,” said Jake Krimmel, senior economist at Realtor.com, in a statement.
Today’s posted rates: the full table
Read more
RateZip is operated by Peklava LLC, DBA RateZip, a licensed mortgage broker (NMLS ID 1592292). We are compensated by some of the partners shown on this page, which may affect which offers appear and where. It does not affect our reporting or our recommendations. Rates shown were last updated September 3, 2026 at 9:50 a.m. ET. See our editorial standards and how we use AI.
How we track rates: methodology. Found an error? Tell us.
Ask us! What questions do you have about content, strategy, pop culture, lifestyle, wellness, history or more? We may use your question in an upcoming article!
Like MediaFeed’s content? Be sure to follow us.
This article originally appeared on RateZip and was syndicated by MediaFeed.co.
