Mortgage Applications Slip As Rates Edge Up; VA Loans Lead Decline

Mortgage applications dipped 1.4% last week as mortgage rates inched higher, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Aug. 15, 2025.

The Market Composite Index, a measure of total mortgage loan application volume, was down 1.4% seasonally adjusted from the prior week (2% unadjusted). That follows the prior week’s sharp 10.9% surge.

Refinance activity was down 3% week over week, but was still 23% higher than the same week in 2024. This pullback comes after refinances spiked 23% a week earlier.

Purchase activity remained essentially flat (+0.1% adjusted, -2% unadjusted) but was 23% higher than a year ago, the strongest pace in four weeks.

“Mortgage rates increased slightly last week, with the 30-year fixed rate now at 6.68%. Applications were down as a result, driven by a 16% decrease in VA applications, which are a typically volatile segment of the market,” stated MBA Vice President and Deputy Chief Economist Joel Kan.

He noted that FHA refinances bucked the trend, as “the FHA rate, at 6.39%, remained competitive relative to other loan types.” 

“Purchase applications were little changed over the week, but were at the strongest pace in four weeks and continued to run well ahead of last year’s pace,” Kan added. “Prospective homebuyers remain more active compared to last year, despite economic headwinds and uncertainty and affordability challenges.”

Loan Type Share of Total Applications:

• Refinance share: 46.1% (down from 46.5%)
   
• Adjustable-rate mortgage (ARM) share: 8.6% (down from 9.6%)
   
• FHA share: 19.1% (up from 18.4%)
   
• VA share: 13.4% (down from 14.2%)
   
• USDA share: 0.6% (up from 0.5%)

Average Contract Interest Rates:

• 30-year fixed (conforming ≤ $806,500): 6.68% (up from 6.67%), points down to 0.60 from 0.64
   
• 30-year fixed (jumbo > $806,500): 6.64% (down from 6.70%), points up to 0.60 from 0.56
   
• FHA 30-year fixed: 6.39% (down from 6.40%), points down to 0.66 from 0.77
   
• 15-year fixed: 5.96% (up from 5.93%), points up to 0.70 from 0.63
   
• 5/1 ARM: 6.01% (up from 5.80%), points down to 0.63 from 0.67

The MBA’s Weekly Mortgage Applications Survey has been conducted since 1990 and covers closed-end residential mortgage applications originated through retail and consumer-direct channels.