Mixed signals continue coming from the U.S. housing market, as the Mortgage Bankers Association (MBA) reported this week that home-purchase applications decreased for a second week while refinances increased, even as rates hit their highest point since August of last year.
The latest Market Composite Index from the MBA—its measure of mortgage loan activity volume and includes purchases and refinances—shows mortgage application activity decreasing this week 2.7% on a seasonally adjusted basis following a decrease of 2.2% last week. On an unadjusted basis, the Index increased 8% compared with the previous week.
The average 30-year mortgage rate is still hovering in the mid-6% range, increasing to 6.65% last week, and was up to 6.64% as of this writing.
“Mortgage applications declined as the 30-year fixed rate increased to 6.65 percent, the highest level since August 2025,” said Joel Kan, MBA’s vice president and deputy chief economist. “Purchase applications were down over the week and dipped below last year’s pace in the week following the July 4th holiday.
“Despite higher mortgage rates, refinance applications increased, led by FHA and VA refinance applications rising 9 and 10 percent, respectively,” Kan added.
MBA’s Refinance Index increased 4% from the previous week and was 7% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 7% from one week earlier. The unadjusted Purchase Index increased 3% compared with the previous week and was 2% lower than the same week one year ago, according to the report.
The refinance share of mortgage activity increased to 43.2% of total applications from 40.6% the previous week, MBA reported. The adjustable-rate mortgage (ARM) share of activity decreased to 7.1% of total applications.
Government-backed loans mostly increased this week: The FHA share of total applications increased to 17.7% from 16.4% the week prior. The VA share of total applications increased to 13.6% from 13.0% the week prior, and the USDA share of total applications remained unchanged at 0.5% the week prior.
To view the full report, click here.
