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Mortgage applications fall 1% as 30-year fixed rate rises to 6.78%
Refinance applications dropped 2% for the week, and the refinance index was 17% lower than the same week a year earlier.
HousingWire reports that mortgage applications fell 1% for the week ending Aug. 21, 2026, as the 30-year fixed rate rose to 6.78%. The Mortgage Bankers Association data showed refinance activity declined 2%, while purchase applications were 5% lower than the same week last year.
The MBA’s refinance index decreased 2% from the prior week and was 17% below the year-ago period. Purchase activity was also weaker, with the seasonally adjusted purchase index down 0.3% week over week, and the unadjusted purchase index down 2% from the previous week.
Mortgage rates were described by Joel Kan, MBA vice president and deputy chief economist, as reaching their highest level in three weeks. He said rates increased around 20 basis points over the past two months, dampening refinancing, with refinance applications declining particularly for FHA and VA loans, while the average loan size for refinances was the lowest since June 2025.
HousingWire also reported changes in application mix: the refinance share rose to 42% of total applications from 41.9%, the ARM share increased to 7.9%, the FHA share declined to 16.2% from 17.1%, and the VA share rose to 12.8% from 12.6%. The USDA share remained unchanged at 0.5%.