WASHINGTON— Mortgage applications declined 1% during the week ending Aug. 21 as rising interest rates continued to restrain refinancing and home-purchase activity, according to the Mortgage Bankers Association.
MBA’s seasonally adjusted Market Composite Index fell 1% from the previous week, while the unadjusted index declined 2%. The Refinance Index dropped 2% for the week and was 17% below its year-earlier level. Purchase applications decreased 0.3% on a seasonally adjusted basis and were 5% lower than a year ago.
“Mortgage rates reached their highest level in three weeks, with the 30-year fixed rate up slightly to 6.78 percent. Mortgage rates have increased around 20 basis points over the past two months, which has dampened refinancing activity,” said Joel Kan, MBA’s vice president and deputy chief economist. “Refinance applications decreased, particularly for FHA and VA loans, and the average loan size for refinances was at its lowest since June 2025.”
“Similarly, purchase activity was down over the week, driven by a 7 percent decrease in FHA applications. The purchase market has also slowed these past two months, with applications now 5% behind last year’s pace,” Kan added.
The refinance share of total applications edged up to 42% from 41.9%, while the adjustable-rate mortgage share increased to 7.9%.
The average rate for conforming 30-year fixed mortgages rose to 6.78% from 6.77%, while the jumbo rate increased to 6.73% from 6.71%. The FHA rate climbed to 6.46%, the 15-year fixed rate rose to 6.10%, and the average rate for 5/1 adjustable-rate mortgages increased to 5.98%.