Weekly mortgage demand slips 2.9% as rates climb past 6.8%

Mortgage applications decreased 2.9% from one week earlier, according to data from the Mortgage Bankers Association (MBA)’s weekly mortgage applications survey for the week ending July 31.

On an unadjusted basis, the index decreased 3% compared with the previous week.

The refinance index decreased 2% from the previous week and was 9% lower than the same week one year ago.

The seasonally adjusted purchase index decreased 4% from one week earlier. The unadjusted purchase index decreased 4% compared with the previous week and was 3% lower than the same week one year ago.

“In the wake of the July FOMC meeting, longer-term rates increased, with mortgage rates reaching their highest level in more than a year, with the 30-year fixed mortgage rate rising to 6.81%,” said Mike Fratantoni, MBA’s senior vice president and chief economist.

“Application volume for both refinance and purchase loans declined for the week and are now running behind last year’s pace, indicating that higher mortgage rates have weakened overall demand.”

The refinance share of mortgage activity increased to 39.9% of total applications, up from 39.5% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.9% of total applications.

By product type, the Federal Housing Administration (FHA) share of applications increased to 17.3%, up from 16.9% a week prior, while the U.S. Department of Veterans Affairs (VA) share decreased to 12.3%, down from 12.6%. And the U.S. Department of Agriculture (USDA) share increased to 0.5%, up from 0.4%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less increased to 6.81%, up from 6.76%, and rates for jumbo loan balances greater than $832,750 increased to 6.72%, up from 6.70%.

The average rate for 30-year fixed mortgages backed by the FHA increased 2 basis points to 6.43% and rates for 15-year fixed mortgages decreased 2 bps to 6.13%. Rates for 5/1 ARMs increased 5 bps to 6.03%.

Xactus Mortgage Intent Index

Xactus’s Mortgage Intent Index — which analyzes aggregated, anonymized credit-pull activity across the Xactus Intelligent Verification Platform — decreased week over week to a reading of 119.8.

“Mortgage intent declined another 2.4% week over week, with the index falling to 119.8 — the lowest non-holiday reading since December 2025,” said Thomas Lloyd, Xactus’s chief strategy officer. “With the 30-year fixed rate now at 6.66%, its highest level since early 2025, the sustained rate pressure is taking a clear toll.”

“Since the index peaked in early March, rates have continued to climb, weighing on consumer intent, which remains 6.9% below the same week last year,” he added.