Mortgage applications rose by 3.6% in the week ended Aug. 7 after a 2.9% decline in the previous week as 30-year fixed mortgage rates declined, according to Mortgage Bankers Association data released Wednesday.
Applications for refinancing loans rose by 5% while new purchase applications increased by a seasonally adjusted 3%.
"After five consecutive weeks of increases, mortgage rates declined slightly last week as oil prices dipped briefly on the hopes of a sustained resolution to the war in Iran," said Joel Kan, MBA's vice president and deputy chief economist.
The average contract interest rate for 30-year fixed mortgages with loan balances of $832,750 or less fell to 6.77% from 6.81% in the previous week.
"The reprieve in rates supported an increase in both purchase and refinance applications over the week, although the pace of applications has fallen below last year's pace in recent weeks," Kan said. "As refinance incentives have dwindled with rates at current levels, the average loan size for refinance applications was down to its lowest level since July 2025."