Mortgage applications climb 3.6% after slight drop in rates

Mortgage applications increased 3.6% from one week earlier, according to data from the Mortgage Bankers Association (MBA)’s weekly mortgage applications survey for the week ending August 7, 2026.

On an unadjusted basis, the index increased 3% compared with the previous week.

The refinance index increased 5% from the previous week, but was 22% lower than the same week one year ago. The refinance share of mortgage activity increased to 40.7% of total applications from 39.9% last week.

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.

“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. The 30-year fixed rate decreased four basis points but remained close to its highest level in a year at 6.77%,” said Joel Kan, CMB, MBA’s vice president and deputy chief economist.

“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. 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.”

Activity remained unchanged week over week for all product types. Adjustable-rate mortgage (ARM) activity remained unchanged at 7.9% of total applications and the Federal Housing Administration (FHA) share of total applications held steady at 17.3%.

The U.S. Department of Veterans Affairs (VA) share of total applications remained unchanged at 12.3% from the week prior and the U.S. Department of Agriculture (USDA) share of total applications remained at 0.5%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.77% from 6.81% and rates for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) decreased to 6.68% from 6.72%.

Rates for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 6.43% while 15-year fixed-rate mortgages rates decreased to 6.10% from 6.13%. The average contract interest rate for 5/1 ARMs decreased to 5.99% from 6.03%.

Xactus Mortgage Intent Index

Xactus’s Mortgage Intent Index — which analyzes aggregated, anonymized credit-pull activity across the Xactus Intelligent Verification Platform — declined slightly week over week to a reading of 119.0.

“Mortgage intent declined another 0.7% week over week, with the Xactus Mortgage Intent Index falling to 119.0 as the 30YR FRM mortgage rates edged higher to 6.69% according to Freddie Mac,” Thomas Lloyd, Xactus’ chief strategy officer, said in a statement.

He continued, “While the weekly decline was modest, the index was 11.7% below the same week last year, marking a widening year-over-year decline.”