Mortgage Activity Slows
US Mortgage Applications Slip Slightly as High Rates and Affordability Dampen Homebuying
Key Points
The average refinance loan size dropped to $282,200, the lowest level since June 2025.
Jumbo mortgage rates moved higher in the latest week, with 6.71% reported by Investing.com and 6.85% reported by Haver for jumbo loans.
The adjustable-rate mortgage (ARM) share of total activity declined to 7.7% in the Aug. 14 week (down from 7.9%).
The average size of a purchase loan declined to $440,500 in the Aug. 14 week.
U.S. mortgage applications slipped 0.4% in the week ending August 14, according to Mortgage Bankers Association data. The dip follows a two-month high in the prior week, Sharecast reported, and reflects the squeeze still facing would-be homebuyers.
The 30-year fixed mortgage rate held near 6.77% — close to its lowest level in a year. That stability did little to lift demand. Purchase applications fell about 2%, even as refinance activity ticked up slightly, Investing.com noted.
Purchase Demand Falls as Buyers Stay on Sidelines
Applications to buy a home dropped roughly 2% for the week, according to Haver Analytics. That decline shows that even steady rates are not enough to bring buyers back. High home prices and tight credit conditions continue to keep many people out of the market.
The average purchase loan size fell to $440,500 in the August 14 week, Haver Analytics reported. That drop signals weaker demand at the higher end of the market. Fewer buyers are stretching for bigger loans when affordability remains this tight.
Refinance Activity Offers a Bright Spot, But Stays Uneven
Refinance applications rose 1.5% week-over-week, according to Sharecast. Conventional and VA loan refinances led the gains. FHA refinances, which serve lower-income borrowers, actually moved lower, HousingWire noted.
Refinances made up about 42% of all mortgage activity for the week. The average refinance loan size dropped to $282,200 — its lowest point since June 2025, Haver Analytics reported. That shrinking loan size suggests fewer high-balance borrowers are rushing to refinance.
Jumbo Rates Rise While ARM Share Quietly Shrinks
Jumbo mortgage rates — loans above the standard conforming limit — moved higher during the week. Investing.com put the jumbo rate at 6.71%, while Haver Analytics reported 6.85%. The gap between sources reflects different survey methods, but the direction was the same: up.
The share of adjustable-rate mortgage applications, or ARMs, edged down to 7.7% from 7.9% the prior week, Haver Analytics reported. ARMs typically appeal to buyers trying to lower their monthly payment. The slight retreat suggests even that workaround is losing some appeal.
Year-Over-Year Picture Remains Bleak Despite Weekly Calm
Weekly moves were small, but the bigger picture is harder to ignore. Total mortgage applications are down 10.6% compared to the same week one year ago, according to Haver Analytics. That gap shows how much the housing market has cooled since rates began climbing.
Joel Kan, MBA's vice president and deputy chief economist, pointed to little change in rates as a key factor, HousingWire reported. When rates do not move much, neither do borrowers. Until rates fall meaningfully or home prices ease, most buyers are likely to stay put.
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