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Mortgage applications dip as rates hold steady, affordability weighs
The refinance share rose to 41.9% of total applications, while the average refinance loan size fell to $282,200, the lowest since June 2025.
Mortgage applications declined 0.4% week over week in the Mortgage Bankers Association survey for the week ending Aug. 14, 2026, while purchase activity fell 2% and was down 3% year over year. MBA data also showed the refinance index increased 2% from the prior week, but remained 18% lower than a year earlier, HousingWire reports.
MBA economist Joel Kan said mortgage rates and applications changed little last week, with only a slight increase in refinances for conventional and VA loans, while FHA refinances were lower. Kan noted borrowers with larger loan sizes were less likely to refinance when rates are higher and said the average loan size on refinances continued to shrink, dipping to $282,200 last week.
On the purchase side, Kan pointed to affordability difficulties resurfacing as homebuyers delay decisions because higher mortgage rates increase monthly payment burdens. The seasonally adjusted purchase index dropped 2% from one week earlier, and the unadjusted purchase index fell 3% week over week, according to the survey.
The refinance share rose to 41.9% of total applications from 40.7% the prior week, while the adjustable-rate mortgage share declined to 7.7%. Contract rates were mixed, with the average 30-year fixed conforming rate unchanged at 6.77% and the average 30-year fixed jumbo rate rising to 6.71% from 6.68%, HousingWire adds.