Mortgage Applications Rise 1.9% Amid High Interest Rates

Mortgage applications rose by 1.9% for the week ending July 17, 2026, according to the Mortgage Bankers Association's (MBA) weekly survey. This increase occurred even as mortgage rates reached a high point, with the 30-year conforming rate hitting 6.69%, the highest since August of the previous year. The seasonally adjusted purchase index saw a notable increase of 6% from the prior week, and the unadjusted purchase index also grew by 6% week-over-week, indicating a slight uptick in home buying activity. This rise in purchase volume is attributed, in part, to growing home inventory in many markets, which is supporting more buyer engagement.

Despite the overall increase in applications, the refinance index experienced a decrease of 2% from the previous week, though it remained 7% higher than the same week in the prior year. The refinance share of total mortgage activity declined to 41.2% from 43.2% the week before. Conversely, the adjustable-rate mortgage (ARM) share of activity saw an increase, reaching 7.7% of total applications. The share of applications from the Federal Housing Administration (FHA) decreased to 17.0% from 17.7%, and the U.S. Department of Veterans Affairs (VA) share also dropped to 13.2% from 13.65%.

Mike Fratantoni, MBA's SVP and chief economist, noted that while inflation data showed a drop in June, the resurgence in oil prices suggests this improvement may not continue into July data. Consequently, mortgage rates are expected to remain elevated. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.69% from 6.65%. In contrast, rates for 30-year fixed-rate mortgages with jumbo loan balances saw a decrease, falling to 6.44% from 6.62%. The U.S. Department of Agriculture (USDA) share of total applications remained stable at 0.5%.