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Mike Fratantoni reports mortgage rates reaching four-week high as purchase volume rises slightly

Mortgage rates reached their highest levels in four weeks as global inflation and deficit concerns pushed yields higher. According to the Mortgage Bankers Association, the seasonally adjusted total mortgage application volume rose 0.8% for the week ending August 28, 2026. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less increased to 6.79% from 6.78% the previous week. While purchase volume saw a modest gain, refinance demand remained low, with the refinance index dropping 1% from the previous week and sitting 19% lower than the same week one year ago. In response to high rates, more borrowers are opting for riskier adjustable-rate mortgages. The adjustable-rate mortgage share of total applications reached 8%, its highest level in five weeks. Mike Fratantoni, senior vice president and chief economist at the Mortgage Bankers Association, noted that potential buyers have plenty of homes to choose from in many local markets, which is supporting transaction volume. Conversely, the average contract rate for 5/1 adjustable-rate mortgages fell to 5.94% from 5.98%.

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