As mortgage rates and inflation remain elevated due to rising oil, gas and energy prices from the Middle Eastern conflict, the latest data from Mortgage Bankers Association (MBA) saw mortgage applications fall this week.
MBA’s Weekly Mortgage Applications Survey saw mortgage applications decrease by 2.3% from one week prior, a 3% decrease on an unadjusted basis.
MBA’s Vice President and Deputy Chief Economist Joel Kan noted that “overall applications were down to the lowest level in five weeks as purchase borrowers pulled back across conventional and government loan types.”
In slightly better news, the Refinance Index was essentially flat, only falling 0.1% from the previous week, and was 35% higher than the same week one year ago. The refinance share of mortgage activity increased to 41.9% of total applications from 40.8% the previous week.
Kan noted that “with a decline in government refinances and an increase in conventional refinancing, likely as the increase in rates came late in the week.”
The seasonally adjusted Purchase Index decreased 4% from one week earlier. The unadjusted Purchase Index decreased 5% compared with the previous week and was 8% higher than one year ago.
The adjustable-rate mortgage (ARM) share of activity increased to 9.6% of total applications. Kan added that this was the “highest share since October 2025, as borrowers sought loan types with lower rates, given that the ARM rate was 80 basis points below the 30-year fixed rate.”
The FHA share of total applications remained unchanged at 17.9% from the week prior. The VA share of total applications decreased to 14.4% from 14.9% the week prior. The USDA share of total applications decreased to 0.4% from 0.5% the week prior.
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