MBA mortgage applications dip 1% as refinance slips 2%

Mortgage applications decreased 1% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending Aug. 21, 2026. On an unadjusted basis, the index decreased 2% compared with last week. 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, while the unadjusted purchase index decreased 2% compared with the previous week and was 5% lower than the same week one year ago. “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,” said Joel Kan, CMB, MBA’s vice president and deputy chief economist. “Refinance applications decreased, particularly for FHA and VA loans, and the average loan size for refinances was at its lowest since June 2025.” Added Kan, “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...