Mortgage Applications Slip As High Rates Sideline More Homebuyers
By CU Today Staff —
WASHINGTON — Mortgage applications slipped 0.4% last week as elevated borrowing costs continued to weigh on homebuyers, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Aug. 14.
MBA’s seasonally adjusted Market Composite Index declined 0.4% from the previous week, while the Purchase Index fell 2%. Purchase applications were also 3% below their level a year earlier. Refinancing provided the lone bright spot, rising 2% for the week, although refinance activity remained 18% below a year ago.
“Mortgage rates and applications changed little last week, with just a slight increase in refinances for conventional and VA loans, while FHA refinances were lower,” said Joel Kan, MBA vice president and deputy chief economist. “Borrowers with larger loan sizes remain less likely to refinance with rates at these higher levels. The average loan size on refinances continues to shrink, dipping to $282,200 last week, the lowest level since June 2025.”
Kan said affordability is again causing potential buyers to hold off.
“Purchase applications decreased and were also lower than last year’s pace. In addition to the economic uncertainty, affordability difficulties have reemerged as a reason for homebuyers to delay purchase decisions given the impact of higher mortgage rates on monthly mortgage payments," Kan added.
The average rate for a 30-year fixed mortgage with a conforming loan balance held at 6.77%, while the jumbo rate increased to 6.71% from 6.68%. FHA rates edged up to 6.45%, while the average 15-year fixed rate declined to 6.08% and the 5/1 ARM rate fell to 5.94%. Refinancing accounted for 41.9% of all mortgage applications, up from 40.7% a week earlier.
Originally reported by CU Today.