Overview

• The average contract rate on a 30-year fixed mortgage fell to around 6.53%, its lowest point in 2025, driving a 23% week-over-week jump in refinance applications and lifting the refi share to about 46.5%.
• Applications for adjustable-rate mortgages climbed roughly 25%, pushing ARMs to nearly 10% of total mortgage requests as borrowers chase lower initial rates.
• Purchase applications in the week ended August 8 rose just 1% despite rate relief, with elevated home prices and homeowners’ pandemic-era low-rate locks keeping sales activity subdued.
• Optimal Blue’s July data showed overall rate locks down 3% month-over-month and a record 8% share for non-QM loans, reflecting lenders’ shift toward nontraditional financing and riskier instruments.
• July’s consumer price index reading of 2.7% year-over-year helped lower Treasury yields but left markets divided on whether the Fed will cut its benchmark rate at the September meeting.