Mortgage Applications Decline in the Week Ending August 16th

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, August 16th, the Market Composite Index—a measure of mortgage loan application volume—declined 10.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 11.0% compared with the previous week.

The Refinance Index declined 15.0% from the previous week but was 90.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 5.0% compared to one week ago. The unadjusted Purchase Index declined 7.0% compared with the previous week and was 8.0% lower than the same week one year ago.

Commenting on the results of this week’s survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Both mortgage rates and mortgage applications have now stabilized after a few weeks of financial market volatility, which led to a quick drop in mortgage rates. Applications were lower last week, led by a 15% decrease in refinance activity despite the 30-year fixed mortgage rate declining for the third consecutive week to 6.5%, the lowest since May 2023. The level of refinance applications remains 23% higher than a month ago and the past two weeks have seen the strongest weekly readings since 2022, as borrowers have sought lower rates. FHA refinance applications bucked the trend and increased for the sixth straight week.

Purchase applications also declined last week, reaching the lowest level since February 2024. Home sales have slowed despite rising inventory levels. Even with lower mortgage rates, potential buyers might be more selective now that there are more options.”