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Mortgage Applications Decline for Sixth Straight Month in August – Eye On Housing

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Mortgage application activity continued to decline in August as elevated US treasury yields pushed mortgage rates higher. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, declined 3.2% month-over-month in August on a seasonally adjusted basis, marking the sixth consecutive monthly decline. Compared to a year ago, total mortgage applications declined 9.1%.

The monthly decline occurred in both major components. Purchase applications decreased 3.1% from July, while refinance applications declined 3.5%. Relative to August 2025, purchase and refinance activities were also down 2.5% and 16.6%, respectively.

The decline in market activity continued to slow down as the average contract rate for a 30-year fixed-rate mortgage rose. Compared to last month, the mortgage rate increased 8 basis points (bps) to 6.78%. The rate was also 9 bps higher than a year ago.

By loan type, applications for adjustable-rate mortgages (ARMs) and fixed-rate mortgages (FRMs) decreased 0.6% and 3.4% month-over-month, respectively. Compared with a year earlier, ARM application volume fell 18.2%, while FRM applications declined 8.2%. Despite the monthly decline in ARM applications, their share of total applications edged higher because ARM activity fell less than FRM activity. ARMs, including both purchase and refinance loans, accounted for 7.9% of total applications on a non-seasonally adjusted basis in August, up 0.2 percentage points from July but 0.9 percentage points below the share recorded a year earlier. The average contract interest rate for 5/1 ARMs was 5.90% in August.

Average loan sizes also declined across all categories in August. The overall loan size decreased 2.3% to $375,300. The average purchase loan size fell 0.8% to $441,000, while the average refinance loan size declined 4.5% to $283,000. The average ARM loan size edged down 1.5% to $923,800.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Mortgage Rates Climb as Global Forces Push Yields Higher – Eye On Housing

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Mortgage rates increased in August as Treasury yields remained elevated amid persistent inflation concerns. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.67% in August, up 13 basis points (bps) over July. Since the conflict in the Middle East began, the 30-year mortgage rate has jumped by more than 60 bps. The average 15-year rate averaged 5.98% in July, up 7 bps from July and 55 bps from the end of February. Mortgage rates are now roughly on par with their levels a year ago, with the 30-year rate 6 bps higher and the 15-year rate 24 bps higher.

The 10-year Treasury yield, a key benchmark for long-term borrowing, rose 10 bps to an average of 4.68% in August, Yields rose in the later part of the month amid a broader selloff in global government bonds. Long-term government bond yields across several major economics climbed to multi-year highs in August, with the 30-year US Treasury yield reaching its highest level since 2007 and long-term yields in Japan and parts of Europe reaching levels not seen in decades. The global selloff reflected growing investor concerns about persistent inflation, rising government debt and heavy sovereign borrowing. Higher oil prices from the ongoing Iran conflict also added to inflation concerns.

Domestically, Treasury yields faced additional upward pressure following the Federal Reserve’s (Fed) annual Jackson Hole symposium. Federal Reserve Chair Kevin Warsh emphasized that inflation remained above the Fed’s 2% target, and that restoring price stability remained the Fed’s primary focus. His remarks reinforced market expectations that monetary policy could tighten later in the year.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Serious Delinquencies Edge Lower While Mortgage Transitions Rise – Eye On Housing

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Household debt delinquency rates showed signs of stabilization in the second quarter of 2026 as overall share of delinquency balances edged lower and the transition to seriously delinquent debt declined for the second consecutive quarter.

According to the latest Quarterly Report on Household Debt and Credit from the Federal Reserve Bank of New York, about 4.7% of outstanding household debt balances were in some stage of delinquency, a decrease of 0.1 percentage points (pp) from the previous quarter. Moreover, 3.3% of total household debt balances were seriously delinquent (at least 90 days delinquent) in the second quarter, down slightly from 3.4% in the first quarter.

The improvement occurred across most consumer loan categories. Serious delinquency rate for auto loans decreased to 5.5% from 5.6%, while credit card balances at least 90 days delinquent declined 0.2 pp to 12.9% in the second quarter. Nonetheless, credit cards continued to have the highest serious delinquency rate among the major debt categories. Housing-related debt had mixed results. The share of mortgage balances that were seriously delinquent fell to 0.99% from 1.1%. In contrast, the serious delinquency rate for student loans and HELOC edged higher to 10.6% and 0.99%, respectively.

The flow of balances newly entering a serious delinquency stage was more encouraging. Overall, 2.6% transitioned into serious delinquency during the second quarter, down from 2.8% in the previous quarter. This marked the second consecutive quarterly decline following a transition of 3.3% in the fourth quarter of 2025. Much of the decline was driven by student loans and credit cards. The share of student loan balances newly becoming seriously delinquent fell sharply to 7.8%, from 10.9% in the first quarter. Credit card transitions also declined to 6.97%, from 7.10%.

Mortgage transitions, however, continued to move in the opposite direction. The share of mortgage balances newly entering serious delinquency increased to 1.52%, from 1.48% in the first quarter. This category has been gradually trending upward in recent years, indicating some continued deterioration in mortgage credit performance even as the stock of seriously delinquent mortgage balances declined during the quarter. Auto loan transitions also edged higher to 3.0%.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Housing Affordability Worsens on Higher Mortgage Rates – Eye On Housing

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After three consecutive quarters of modest improvement, housing affordability worsened in the second quarter as higher mortgage rates, rising construction costs and economic uncertainty weighed on the market, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).

The CHI results from the second quarter of 2026 show that a family earning the nation’s median income of $106,800 needed 34% of its income to cover the mortgage payment on a median-priced new home. Low-income families, defined as those earning only 50% of median income, would have to spend 67% of their earnings to pay for the same new home.

The percentage of a family’s income needed to purchase a new home rose from 32% in the first quarter of 2026 to 34% in the second quarter, driven by a more than 30-basis point rise in the average mortgage rate and a 2% increase in the median price of a new home. The low-income CHI also rose 65% to 67% over that period.

The figures are higher for the purchase of existing homes in the U.S. A typical family would have to pay 36% of their income for a median-priced existing home while a low-income family would need to pay 71% of their earnings to make the same mortgage payment.

The U.S. data for the percentage of earnings needed to purchase a new home in the second quarter is based on a national median new home price of $410,700 and median income of $106,800. The second quarter median new home price is up 2% from $403,200 in the first quarter. Meanwhile, the corresponding price for an existing home rose much more sharply (8%) in the second quarter to $434,900 from $404,300 in the previous quarter. The average 30-year mortgage rate moved higher from 6.20% in the first quarter to 6.51% in the second quarter.

CHI is also available for 175 metropolitan areas, calculating the percentage of a family’s income needed to make the mortgage payment on an existing home based on the local median home price and median income in those markets.

In eight out of 175 markets in the second quarter, the typical family is severely cost-burdened (must pay more than 50% of their income on a median-priced existing home). In 77 other markets, such families are cost-burdened (need to pay between 31% and 50%). There are 90 markets where the CHI is 30% of earnings or lower.

The Top 5 Severely Cost-Burdened Markets

San Jose-Sunnyvale-Santa Clara, Calif., was the most severely cost-burdened market on the CHI, where 82% of a typical family’s income is needed to make a mortgage payment on an existing home. This was followed by:

San Francisco-Oakland-Fremont, Calif. (71%)
Urban Honolulu, Hawaii (70%)
San Diego-Chula Vista-Carlsbad, Calif. (68%)
Naples-Marco Island, Fla. (60%)

Low-income families would have to pay between 121% and 164% of their income in all five of the above markets to cover a mortgage.

The Top 5 Least Cost-Burdened Markets

By contrast, Decatur, Ill., was the least cost-burdened market on the CHI, where typical families needed to spend just 16% of their income to pay for a mortgage on an existing home. Rounding out the least burdened markets are:

Elmira, N.Y. (17%)
Peoria, Ill. (18%)
Springfield, Ill. (20%)
Davenport-Moline-Rock Island, Iowa-Ill. (20%)

Low-income families in these markets would have to pay between 31% and 39% of their income to cover the mortgage payment for a median-priced existing home.

Visit nahb.org/chi for tables and details.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Mortgage Applications Fall Across Loan Types in July – Eye On Housing

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Mortgage application activity slowed in July amid continuation of the war in Iran. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, declined 6.6% month-over-month in July on a seasonally adjusted basis. Compared to a year ago, total mortgage applications declined 1.5%, the first year-over-year decline in two years.

The market decline occurred in both major components. Purchase applications decreased 6.4% from June, while refinance applications declined 7.2%. Relative to July 2025, purchase and refinance activities were also down 2.4% and 0.1%, respectively.

The slowdown coincided with higher borrowing costs as ongoing conflict in Iran pushed the average contract rate for a 30-year fixed-rate mortgage up 11 basis points (bps) to 6.70%. Nonetheless, the rate remained 12 bps lower than its level a year ago.

By loan type, applications for adjustable-rate mortgages (ARMs) and fixed-rate mortgages (FRMs) decreased 12.5% and 6.1% month-over-month. Compared with a year earlier, ARM application volume was unchanged, while FRM applications declined 1.6%. ARMs, including both purchase and refinance loans, accounted for 7.7% of total applications on a non-seasonally adjusted basis in July. This was 0.5 percentage points lower than in June and 0.1 percentage points higher than the share recorded a year earlier. The average contract interest rate for 5/1 ARMs was 5.9% in July.

Average loan sizes declined across all categories in July. The overall loan size decreased 2.5% to $383,600. The average purchase loan size fell 2.6% to $444,600, while the average refinance loan size declined 2.2% to $296,000. The average ARM loan size edged down 0.7% to $937,600.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Mortgage Rates Climb Again as Iran Conflict Re-escalates – Eye On Housing

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Re-escalation of the conflict in Iran pushed mortgage rates higher in July. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.54% in July, up 5 basis points (bps) over June. Since the conflict in the Middle East began, the 30-year mortgage rate has climbed by almost 50 bps. The average 15-year rate averaged 5.91% in July, up 9 bps from June, and up 48 basis points since the end of February. Compared to a year ago, the 30-year rate remains lower by 18 bps, however, the 15-year rate is now higher by 5 bps.

The 10-year Treasury yield, a key benchmark for long-term borrowing, rose 10 bps to an average of 4.58% in July as renewed attacks in the Strait of Hormuz heightened concerns about energy supplies and inflation. The yield rose sharply, ending July at 4.67%, 23 bps above its June closing level.

With the conflict unresolved and global oil supply still constraint, inflation remained a key concern among policymakers. At its July meeting, the Federal Reserve (Fed) held the federal funds rate within its target range of 3.50% to 3.75%. However, three Fed officials dissented in favor of a quarter-point rate increase to curtail inflation. The July monetary policy hold marked the fifth consecutive hold, following 75 basis points of cuts at the end of 2025.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Mortgage Activity Flat in June, ARM Share Decreases – Eye On Housing

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Mortgage applications stalled in June as higher mortgage rates dampened market activity. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, stayed relatively unchanged with a marginal decrease of 0.3% month-over-month on a seasonally adjusted basis. The decline was driven by a 2.5% decline in refinancing applications, which offset a modest 0.7% gain in purchase applications. Compared with a year earlier, however, total mortgage application activity remained 7.9% higher, with refinance applications up 15.6% and purchase applications rising 3.1%. Meanwhile, applications for adjustable-rate mortgages (ARM) decreased 9.4% over the month, bringing the ARM share of total applications to 8.2%.

The average contract rate for a 30-year fixed-rate mortgage increased 5 basis points (bps) to 6.59% in June, as markets priced in inflation risks and the possibility of the Federal Reserve increasing rates this year. Nonetheless, the rate remained 27 bps lower than its level a year ago.

By loan type, applications for ARMs decreased 9.4%, while fixed-rate mortgages (FRMs) increased about 0.4% from the previous month. On a year-over-year basis, applications for FRM and ARMs were up 6.9% and 22.4%, respectively. As of June 2026, the share of ARMs applications was down 0.8 percentage points from the prior month to 8.2% on a non-seasonally adjusted basis (NSA). Compared to a year ago, ARMs share were 0.6 percentage points higher. The average contract interest rate for 5/1 ARMs was 5.8% in June.

Loan sizes decreased across most categories in June, with ARM loans being the only exception. Consequently, the overall average loan size declined 3.4% to $393,800. The average purchase and refinance loan sizes decreased 1.8% to $456,500, and 5.8% to $302,500, respectively. The average ARM loan size edged up 0.8% to $944,800.



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Mortgage Rates Increased in June as Markets Weigh Inflation and Fed Policy – Eye On Housing

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Mortgage rates continued to increase in June as markets priced in a rate hike due to high inflation and stronger-than-expected labor market. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.49% in June, up 8 basis points (bps) over May. Since the conflict in the Middle East began, the 30-year mortgage rate has increased by 44 basis points. The average 15-year rate averaged 5.82% in June, up 8 bps from May, and up 39 basis points since the end of February. Even so, both rates remain lower than a year ago by 33 bps and 13 bps, respectively.

The 10-year Treasury yield, a key benchmark for long-term borrowing, held steady at an average of 4.48% in June. The 10-year yield surpassed 4.5% in the second week of the month following reports of persistent high inflation and a surprisingly resilient labor market. Furthermore, the latest Federal Open Market Committee (FOMC) meeting revealed that nine out of 18 Fed officials indicated at least one rate hike within the year.

Nonetheless, the 10-year Treasury yield eased later in the month, ending June at around 4.44%, as the United States and Iran reached a preliminary agreement and signed a Memorandum of Understanding (MoU). The agreement temporarily reopened the Strait of Hormuz to commercial shipping on a “toll-free” basis through mid-August to facilitate further negotiations over Iran’s nuclear program.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Mortgage Applications Retreat in May, with ARMs Gaining Share – Eye On Housing

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Mortgage application activity declined again in May as higher mortgage rates continued to suppress the market, although adjustable-rate mortgages (ARM) gained some traction. According to the Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, applications fell 5.5% month-over-month in May on a seasonally adjusted basis. The decline was driven by refinance activity, which dropped 12.3% over the month, while purchase applications posted a modest 1.8% increase. Compared with a year earlier, however, total mortgage application activity remained 14.2% higher, with refinance applications up 26.4% and purchase applications rising 6.2%. Meanwhile, applications for adjustable-rate mortgages (ARM) rose 3.1% over the month, nudging the ARM share of total applications up to 9.0%.

The average contract rate for a 30-year fixed-rate mortgage increased 13 basis points (bps) to 6.54% in May, as conflict in Iran pushed Treasury yields higher. Nonetheless, the rate remained 36 bps lower than its level a year ago. As borrowing costs moved up, borrowers showed some renewed interest in ARMs, which can offer lower initial rates than fixed-rate loans.

By loan type, applications for ARMs increased 3.0%, while fixed-rate mortgages (FRMs) decreased about 6.1% from the previous month. On a year-over-year basis, applications for FRM and ARMs were up 12.4% and 38.2%, respectively. As of May 2026, ARMs applications, including both purchase and refinance loans, accounted for 9.0% of total applications on a non-seasonally adjusted basis, up 0.7 percentage points from the prior month and 1.5 percentage points a year earlier. The average contract interest rate for 5/1 ARMs was 5.7% in April.

Loan sizes increased across most categories in May, with refinance loans being the main exception. Consequently, the overall average loan size edged up 2.5% to $407,600. The average purchase loan size increased 2.2% to $465,000, while the average refinance loan size declined 1.5% to $321,000. The average ARM loan size edged up, decreasing 1.9% to $937,200.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Mortgage Rates Increase Further as Inflation Remains Elevated – Eye On Housing

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Mortgage rates continued to increase in May as inflation accelerated. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.41% in May, up 7 basis points (bps) over April. Since the conflict in the Middle East began, the 30-year mortgage rate has increased by 36 basis points. The average 15-year rate averaged 5.76% in May, up 7 bps from April, and up 33 basis points since the end of February. Even so, both rates remain lower than a year ago by 41 bps and 19 bps, respectively.

The 10-year Treasury yield, a key benchmark for long-term borrowing, averaged 4.47% in May, 16 bps higher than the previous month. Stronger-than-expected inflation pushed yields upward, with the 10-year yield reaching as high as 4.6% during the month. Rising energy prices kept inflation high, as fuel oil prices increased 5.8% and gasoline prices rose 5.4%.

Persistently high inflation has also strained household budgets. As people used more of their disposable income or drew down on savings to cover everyday expenses, the personal saving rate fell to 2.6% in April. The rate was the lowest since June 2022 when CPI was at its peak.



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