Key facts
- Mortgage applications fell 6.4% in the week ending July 24.
- The average 30-year fixed mortgage rate rose to 6.76%.
- Refinance applications dropped 10%, while purchase applications fell 4%.
- The refinance share of mortgage activity declined to 39.5%.
- The adjustable-rate mortgage share increased to 8.1%.
Mortgage applications in the United States saw a significant decline of 6.4% in the week ending July 24, according to the Mortgage Bankers Association (MBA). This downturn was primarily attributed to a rise in mortgage rates, with the 30-year fixed rate reaching 6.76%, its highest point since August 2025.
Both refinance and purchase mortgage applications experienced decreases. The refinance index fell by 10% from the previous week, while the purchase index saw a 4% decline. On an unadjusted basis, the purchase index was 3% lower than the prior week but remained 3% higher than the same week last year.
Joel Kan, MBA’s vice president and deputy chief economist, noted that the upward trend in rates is impacting refinance borrowers and contributing to affordability challenges for homebuyers. The share of refinance activity in total mortgage applications decreased to 39.5% from 41.2% the previous week, while the share of adjustable-rate mortgages (ARMs) increased to 8.1%.
Government-backed loan shares also saw reductions, with the FHA share dropping to 16.9% and the VA share falling to 12.6%. The USDA share decreased to 0.4%.
Separately, Xactus reported that its Mortgage Intent Index, which tracks credit-pull activity, declined approximately 2.7% week-over-week to 122.7. Thomas Lloyd, Xactus’s chief strategy officer, stated that the current rate environment continues to constrain mortgage intent, with the index remaining about 6.5% below its level from the same week last year.