Higher mortgage rates push applications lower after holiday week

Mortgage applications fell last week as borrowing costs increased, with the average rate on a 30-year fixed mortgage reaching its highest level in nearly a year, according to the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending July 10, 2026.

Last week’s results included an adjustment for the Fourth of July holiday. On an unadjusted basis, the index increased 8% compared with the previous week.

The refinance index increased 4% from the previous week and was 7% higher than the same week one year ago. The seasonally adjusted purchase index decreased 7% from last week, while the unadjusted purchase index increased 3% compared with the previous week and was 2% lower than the same week one year ago.

“Mortgage applications declined as the 30-year fixed rate increased to 6.65%, the highest level since August 2025. Purchase applications were down over the week and dipped below last year’s pace in the week following the July 4th holiday,” said Joel Kan, MBA’s vice president and deputy chief economist. “Despite higher mortgage rates, refinance applications increased, led by FHA and VA refinance applications rising 9% and 10%, respectively.”

The refinance share of mortgage activity increased to 43.2% of total applications from 40.6% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.1% of total applications.

The Federal Housing Administration (FHA) share of total applications increased to 17.7% from 16.4% the week prior. The U.S. Department of Veterans Affairs (VA) share of total applications increased to 13.6% from 13.0% the week prior. The U.S. Department of Agriculture (USDA) share of total applications remained unchanged at 0.5% from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 6.65% from 6.58%, and rates for loans with jumbo loan balances (greater than $832,750) increased to 6.62% from 6.50%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.33% from 6.28%. The average contract interest rate for 15-year fixed-rate mortgages increased to 6.05% from 5.99%, and the average contract interest rate for 5/1 ARMs decreased to 5.75% from 5.84%.

Xactus Mortgage Intent Index

Xactus’s Mortgage Intent Index — which analyzes aggregated, anonymized credit-pull activity across the Xactus Intelligent Verification Platform — increased week over week to a reading of 124.7, an over 12% change from the previous week’s reading of 110.9.

“Mortgage intent rebounded approximately 12.4% week over week, with the Xactus Mortgage Intent Index rising to 124.7 as borrower activity recovered from the July 4 holiday-shortened week,” said Thomas Lloyd, Xactus’ chief strategy officer.

Lloyd said that because the index is not seasonally adjusted, holiday-related swings in weekly volume tend to be more pronounced and “should be considered when interpreting short-term changes.”

He continued, “Despite the rebound, the index remained approximately 8.7% below the same week last year, reflecting the continued impact of elevated mortgage rates and affordability challenges on borrower demand.”