MBA US Mortgage Applications Decline Further in Week Ended Aug. 21; Refinancings, New Purchases Both Dip

07:04 AM EDT, 08/26/2026 (MT Newswires) -- Mortgage applications fell by 1% in the week ended Aug. 21, a reflection of slightly higher average 30-year fixed mortgage rates, according to Mortgage Bankers Association data released Wednesday. This follows a 0.4% decrease in overall activity in the week ended Aug. 14. Applications for refinancing loans fell by 2%, while new purchase applications declined by a seasonally adjusted 0.3%. The average contract interest rate for 30-year fixed mortgages with loan balances of $832,750 or less rose to 6.78% from 6.77% in the previous week. "Mortgage rates have increased around 20 basis points over the past two months, which has dampened refinancing activity," said Joel Kan, MBA's vice president and deputy chief economist, noting declines for FHA and VA loans and the smallest average loan size since June 2025. "Similarly, purchase activity was down over the week, driven by a 7% decrease in FHA applications," Kan added. "The purchase market has also slowed these past two months, with applications now 5% behind last year's pace."