While mortgage rates remain elevated, a slight retreat this past week drove home-purchase application activity up for the first time in several weeks.
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 increasing this week 3.6% on a seasonally adjusted basis after last week’s 2.9% decline and ongoing dips over the last five weeks. On an unadjusted basis, the Index increased 3% compared with the previous week.
The increase comes as the average 30-year mortgage rate reached its highest point in over a year at 6.81% last week, but ticked down 6.77% this past week. The average sits at 6.79% as of this writing.
“After five consecutive weeks of increases, mortgage rates declined slightly last week as oil prices dipped briefly on the hopes of a sustained resolution to the war in Iran,” said Joel Kan, MBA’s vice president and deputy chief economist. “The 30-year fixed rate decreased four basis points but remained close to its highest level in a year at 6.77 percent.”
MBA’s Refinance Index increased 5% from the previous week and was 22% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 3% from one week earlier. The unadjusted Purchase Index increased 2% compared with the previous week and was 1% lower than the same week one year ago, according to the report.
The refinance share of mortgage activity increased to 40.7% of total applications from 39.9% the previous week, MBA reported. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 7.9% of total applications.
“The reprieve in rates supported an increase in both purchase and refinance applications over the week, although the pace of applications has fallen below last year’s pace in recent weeks,” Kan added. “As refinance incentives have dwindled with rates at current levels, the average loan size for refinance applications was down to its lowest level since July 2025.”
For government-backed loans, this week’s report showed the FHA share of total applications remained unchanged at 17.3% from the week prior. The VA share of total applications remained unchanged at 12.3% from the week prior, and the USDA share of total applications remained unchanged at 0.5% from the week prior.
To view the full report, click here.
