US Mortgage Applications Fall in the Week Ending August 21

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, August 21, the Market Composite Index—a measure of mortgage loan application volume—decreased 1.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2%.

The Refinance Index decreased 2% from the previous week and was 17% lower than the same week one year ago.

The seasonally adjusted Purchase Index decreased 0.3% from one week earlier. On an unadjusted basis, the Purchase Index decreased 2% compared with the prior week and was 5% lower than the same week one year ago.

In remarks accompanying the release, MBA Vice President and Deputy Chief Economist Joel Kan said:

“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. 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.”