Mortgage Applications Fall As Rates Hit Highest Level In More Than A Year
By CU Today Staff —
WASHINGTON—Mortgage applications fell 2.9% last week as rising interest rates continued to weigh on both home purchases and refinancing activity, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ended July 31.
The MBA said its Market Composite Index, a measure of overall mortgage application volume, declined 2.9% on a seasonally adjusted basis from the prior week. Purchase applications dropped 4% from the previous week and were 3% below year-ago levels, while refinance applications fell 2% and were down 9% from the same week in 2025.
"In the wake of the July FOMC meeting, longer-term rates increased, with mortgage rates reaching their highest level in more than a year, with the 30-year fixed mortgage rate rising to 6.81%," said Mike Fratantoni, MBA's senior vice president and chief economist. "Application volume for both refinance and purchase loans declined for the week, and are now running behind last year's pace, indicating that higher mortgage rates have weakened overall demand."
The average contract rate for a 30-year fixed-rate conforming mortgage increased to 6.81% from 6.76% a week earlier, while the rate for jumbo 30-year loans edged up to 6.72% from 6.70%. The average rate for FHA-backed 30-year mortgages rose to 6.43%, while the 15-year fixed-rate mortgage slipped slightly to 6.13% from 6.15%.
Refinancing accounted for 39.9% of all mortgage applications, up slightly from 39.5% the previous week. FHA loans represented 17.3% of total applications, while VA loans accounted for 12.3% and USDA loans 0.5%. Adjustable-rate mortgages made up 7.9% of total application activity.
Originally reported by CU Today.