Mixed Mortgage Demand, But Lower Rates Should Help Next Week's Refi Numbers

Mortgage application activity was little changed last week, with only a fractional decline in overall volume. The Mortgage Bankers Association’s weekly survey showed a 0.5% decrease in the seasonally adjusted Composite Index for the week ending August 22, 2025. “Mortgage rates inched higher for the second straight week, with the 30-year fixed-rate up to 6.69 percent. While this was not a significant increase, it was enough to cause a pullback in refinance applications,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Purchase applications had their strongest week in over a month, up 2 percent, and the average loan size increased to its highest level in two months at $433,400.” The Refinance Index fell 4% from the previous week but remains 19% higher than the same week a year ago. The Purchase Index rose 2% on a seasonally adjusted basis and is running 25% ahead of last year’s level. The refinance share of total mortgage applications decreased to 45.3%. ARM share declined to 8.4%. FHA share held steady at 19.1%, while VA share slipped to 13.3%. Mortgage Rate Summary: 30yr Fixed: 6.69% (from 6.68%) | Points: 0.60 (unchanged) 15yr Fixed: 6.03% (from 5.96%) | Points: 0.77 (up from 0.70) Jumbo 30yr: 6.67% (from 6.64%) | Points: 0.44 (down from 0.60) FHA: 6.35% (from 6.39%) | Points: 0.80 (up from 0.66) 5/1 ARM: 5.94% (from 6.01%) | Points: 0.68 (up from 0.63)