U.S. mortgage applications declined 0.4% on a seasonally adjusted basis for the week ending August 14, reflecting modest softening in demand despite stable borrowing costs, the Mortgage Bankers Association (MBA) reported on Wednesday.
Refinance applications rose 2% from the prior week, though they remained 18% below the same period last year. Purchase applications fell 2% on a seasonally adjusted basis and 3% year-over-year, continuing a trend of subdued homebuyer activity amid affordability pressures. The refinance share of total applications increased to 41.9%, up from 40.7% the previous week, while adjustable-rate mortgages accounted for 7.7% of applications.
The average loan size for refinances dropped to $282,200, the lowest level since June 2025, as borrowers with larger balances showed reduced refinancing activity. The MBA’s Vice President and Deputy Chief Economist Joel Kan noted that higher rates and economic uncertainty continued to weigh on purchase decisions, with monthly payments remaining a key deterrent for potential buyers.
Fixed mortgage rates showed little movement last week. The 30-year conforming loan rate held at 6.77%, while jumbo loans rose to 6.71% from 6.68%. Fifteen-year fixed rates fell to 6.08% from 6.10%, and 5/1 adjustable-rate mortgages declined to 5.94% from 5.99%. FHA-backed 30-year fixed rates increased to 6.45% from 6.43%.
