Mortgage application activity slowed down during the week ending July 24, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, dropped by 6.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index was 6% below the previous week’s level.
The seasonally adjusted Purchase Index was down by 4% from one week earlier while the unadjusted index took a 3% tumble – the latter was also 3% higher than the same week one year ago.
The Refinance Index fell by 10% and was 2% lower than the same week one year ago, while the refinance share of mortgage activity decreased to 39.5% of total applications from 41.2% from the previous week.
Among the federal programs, the FHA share of total applications dipped to 16.9% from 17.0% the week prior while the VA share of total applications decreased to 12.6% from 13.2% and the USDA share of total applications inched down to 0.4% from 0.5%.
“Following last week’s spike in oil prices, mortgage rates moved higher, with the 30-year fixed rate increasing to 6.76%, the highest rate since August 2025,” said Joel Kan, MBA’s vice president and deputy chief economist. “This upward trajectory in rates continues to significantly impact refinance borrowers, with a 10% decline in refinance applications, including a steeper drop in government refinances. Despite housing inventory increasing in certain markets, higher rates have added to ongoing affordability challenges for many homebuyers, which drove the decrease in purchase activity over the week.”
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