A for sale sign in front of a home in Miami, Florida on August 11, 2026.
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Mortgage rates rose for five weeks, but fell only slightly last week. It was enough to bring some demand back into the market.
Total mortgage applications increased 3.6% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less, including origination fees for loans with a 20% down payment, increased from 0.65 to 0.67 points and decreased from 6.81% to 6.77%.
“Mortgage rates declined slightly last week as oil prices briefly declined on hopes for a durable resolution to the Iran war,” Joel Kang, MBA’s vice president and deputy chief economist, said in a release.
The number of mortgage refinance applications rose 5% for the week, but was down 22% from the same week last year. A year ago, interest rates were 10 basis points lower.
“The average loan amount for refinance applications has fallen to its lowest level since July 2025, as current interest rate levels reduce the incentive to refinance,” Kang said.
The number of applications for mortgages to buy homes rose 3% in the week, down 1% from the same month last year. August is typically one of the slowest months for home sales, but this year looks set to be even weaker than last year as home prices remain high and economic uncertainty declines overall. The supply of homes for sale has also not improved significantly.
Mortgage rates rose slightly earlier this week, according to a separate Mortgage News Daily survey. Interest rates could move more clearly depending on the results of the monthly consumer price index, which will be released on Wednesday.
“As far as interest rates go, this is one of the most important monthly economic data,” said Matthew Graham, chief operating officer of Mortgage News Daily. “There is no way to know in advance how that will affect interest rates, only that a large deviation from expectations is likely to result in a larger-than-average rise or fall.”
