Mortgage application activity slowed for the week ending Aug. 21, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, dipped by 1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index was down by 2% compared with the previous week.
The seasonally adjusted Purchase Index was a scant 0.3% lower from one week earlier while the unadjusted index was down by 2% – the latter was also 5% lower than the same week one year ago.
The Refinance Index slid by 2% and was 17% lower than the same week one year ago. However, the refinance share of mortgage activity inched up to 42.0% of total applications from 41.9% in the previous week.
Among the federal programs, the FHA share of total applications decreased to 16.2% from 17.1% the week prior and the VA share of total applications increased to 12.8% from 12.6% while the USDA share of total applications remained unchanged at 0.5%.
“Mortgage rates reached their highest level in three weeks, with the 30-year fixed rate up slightly to 6.78%. 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% decrease in FHA applications. The purchase market has also slowed these past two months, with applications now 5% behind last year’s pace.”
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