On August 28th, 2025, a “for sale” sign was on sale in Alhambra, California.
Frederick J. Brown | AFP | Getty Images
Mortgage rates fell again last week, but were not enough to elicit overall demand for the rut over the past month. According to the Mortgage Bankers Association’s Seasonally Adjusted Index, total mortgage applications fell 1.2% compared to last week.
The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances fell from 6.69% to 6.64%, below $806,500, with points falling to 0.59, including starting fees for a 20% down payment loan. That was the lowest rate since April.
Applications to refinance mortgages, which are most sensitive to weekly rate changes, increased by 1% in a week, 20% higher than the same week a year ago. This despite the fact that at this point last year, the mortgage rate was 21 basis points lower.
Mortgage applications to buy homes fell 3% a week, 17% higher than the same week a year ago. Potential buyers today have more options than they did last year, but prices are also higher at least at the national level. Affordable prices are the main barriers that stand in a stronger way of selling.
“The refinance application has increased slightly from the previous week, driven by the FHA and VA refinance applications, but traditional refinances have declined. The FHA rate is about 30 basis points lower than the traditional rate in 2025. “After a four-week increase, purchasing activity has been pulled back. Due to slower home buying activities, various loan types have been reduced.”
Following the sale in the European bond market, mortgage rates rose very slightly this week. However, there are some important economic reports this week, including a very important monthly employment report on Friday.
