Mortgage applications dip 0.4% as purchase demand falls

Mortgage applications decreased 0.4% for the week ending August 14, 2026, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

The Market Composite Index, which measures mortgage loan application volume, fell 0.4% on a seasonally adjusted basis and 1% on an unadjusted basis from the prior week. The seasonally adjusted Purchase Index dropped 2%, while the unadjusted Purchase Index fell 3% week-over-week and was 3% lower than the same week one year ago.

The Refinance Index rose 2% from the previous week but remained 18% below the same period a year ago. The refinance share of total mortgage activity edged up to 41.9% from 40.7%.

"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's VP and Deputy Chief Economist. He noted the average loan size on refinances fell to $282,200, the lowest level since June 2025.

Kan attributed the decline in purchase applications to economic uncertainty and affordability pressures, stating that "higher mortgage rates on monthly mortgage payments" have led homebuyers to delay purchase decisions.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) held steady at 6.77%. The rate for jumbo loan balances rose to 6.71% from 6.68%, while FHA-backed 30-year fixed rates increased to 6.45% from 6.43%. The 15-year fixed rate declined to 6.08% from 6.10%, and the 5/1 ARM rate dropped to 5.94% from 5.99%.

The adjustable-rate mortgage share of activity fell to 7.7% of total applications. The FHA share dipped to 17.1%, while the VA share rose to 12.6%. The USDA share remained at 0.5%.

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