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Home » Demand for mortgages stagnates along with interest rates
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Demand for mortgages stagnates along with interest rates

Editor-In-ChiefBy Editor-In-ChiefAugust 19, 2026No Comments2 Mins Read
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An aerial view of a residential area in Pembroke Pines, Florida on June 4, 2026.

Joe Radle | Getty Images

Mortgage rates have been static for the last week, leaving little incentive for homebuyers and current homeowners to call their lenders.

Total mortgage applications were about flat from the previous week, down 0.4%, 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 remained unchanged at 6.77%, decreasing to 0.65 points from 0.67 points including origination fees for loans with 20% down payments.

The number of mortgage refinance applications rose 2% for the week, down 18% from the same week last year, when interest rates were slightly lower.

“Mortgage rates and application activity were little changed last week, with refinances to conventional and VA loans only slightly up, and FHA refinances down,” Joel Kang, vice president and deputy chief economist at MBA, said in a release. “Borrowers with larger loans remain less likely to refinance at these higher rates. The average refinance loan size continues to shrink, dropping to $282,200 last week, the lowest level since June 2025.”

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The number of applications for mortgages to buy homes fell by 2% for the week, and by 3% compared to the same week last year. Mortgage rates were unchanged last week, but remain at the high end of their recent range.

“Along with economic uncertainty and the impact of rising mortgage rates on monthly mortgage payments, affordability is once again emerging as a reason why homebuyers are delaying their purchase decisions,” Kang added.

Mortgage rates have risen slightly again since the beginning of this week, according to a separate Mortgage News Daily survey.

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