Despite near annual highs of the 30-year average mortgage rate, home-purchase application activity had been holding steady or even modestly increasing in recent weeks, attributed to the rise in home inventory. That trajectory flipped this week with a dip in mortgage applications as rates hit another record high since last August.
The latest Market Composite Index from the Mortgage Bankers Association (MBA)—its measure of mortgage loan activity volume and includes purchases and refinances—shows mortgage application activity decreasing this week 6.4% on a seasonally adjusted basis following a increase of 1.9% last week. On an unadjusted basis, the Index decreased 6% compared with the previous week.
The slight uptick comes as the average 30-year mortgage rate reached its highest point since last August at 6.76% this past week, and was up to 6.78% as of this writing.
“Following last week’s spike in oil prices, mortgage rates moved higher, with the 30-year fixed rate increasing to 6.76 percent, the highest rate since August 2025,” said Joel Kan, CMB, MBA’s vice president and deputy chief economist. “Despite housing inventory increasing in certain markets, higher rates have added to ongoing affordability challenges for many homebuyers, which drove the decrease in purchase activity over the week.”
MBA’s Refinance Index decreased 10% from the previous week and was 2% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 4% from one week earlier. The unadjusted Purchase Index decreased 3% compared with the previous week and was 3% higher than the same week one year ago, according to the report.
The refinance share of mortgage activity decreased to 39.5% of total applications from 41.2% the previous week, MBA reported. The adjustable-rate mortgage (ARM) share of activity increased to 8.1% of total applications.
Pointing to the notable drop in refinance activity in the report, Kan said that segment was hit hardest this past week.
“This upward trajectory in rates continues to significantly impact refinance borrowers, with a 10 percent decline in refinance applications, including a steeper drop in government refinances,” Kan said in a statement.
Taking a closer look at that steeper drop, this week’s report showed the FHA share of total applications decreased to 16.9% from 17.0% the week prior. The VA share of total applications decreased to 12.6% from 13.2% the week prior, and the USDA share of total applications decreased to 0.4% from 0.5% the week prior.
To view the full report, click here.
