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Mortgage application volume slips as rates hit three-week high
Mortgage rates reached 30-year fixed highs in three weeks at 6.78%, and FHA and VA refinance applications fell notably in the latest week.
Mortgage application activity softened in the latest week as mortgage rates moved higher, according to the Mortgage Bankers Association via Mortgage News Daily. For the week ending August 21, total applications fell 1.0% on a seasonally adjusted basis.
Purchase demand declined modestly, with purchase applications down 0.3% from the prior week and 5% below the same week a year earlier. FHA applications drove much of the weekly decline, dropping 7%.
Refinance activity also lost ground, with the Refinance Index down 2% from the previous week and still 17% below year-ago levels. Mortgage News Daily reports that FHA and VA refinance applications fell particularly, and the average refinance loan size dropped to its lowest level since June 2025.
Even as refinancing pulled back, refinances made up a slightly larger share of overall applications, rising to 42.0% from 41.9% the week before. Mortgage News Daily added that the adjustable-rate mortgage share ticked up to 7.9% from 7.7%, while the 30-year fixed average contract rate rose to 6.78% and the 5/1 ARM rate climbed to 5.98%.