Key facts
- Mortgage applications increased 0.8% week-over-week for the week ending August 28, 2026.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to 6.79%.
- Seasonally adjusted purchase index increased 2% from the previous week.
- Refinance index decreased 1% from the previous week.
- The share of adjustable-rate mortgages (ARMs) reached 8%.
Mortgage applications saw a modest increase of 0.8% in the week ending August 28, 2026, driven by a 2% rise in purchase applications, according to the Mortgage Bankers Association (MBA). However, refinance applications declined by 1%, contributing to a slight decrease in the overall refinance share of mortgage activity to 41.8%.
The average interest rate for a 30-year fixed-rate mortgage with a conforming loan balance edged up to 6.79%, nearing a four-week high. This increase in rates, attributed to inflation and deficit concerns impacting global yields, led to a drop in refinance volume. Despite this, purchase volume saw a modest increase, supported by ample housing inventory in many local markets.
A notable trend is the growing popularity of adjustable-rate mortgages (ARMs), with their share climbing to 8% of total applications, the highest level in five weeks. The Federal Housing Administration (FHA) share of applications decreased slightly to 15.9%, while the U.S. Department of Veterans Affairs (VA) share increased to 13.6%.
Separately, Xactus's Mortgage Intent Index, which tracks credit-pull activity, declined by 2.92% week-over-week to 116.3. This reading is 7.75% lower than the same week last year and represents the lowest non-holiday level for the index this year, indicating continued sensitivity of borrower activity to elevated mortgage rates.