Mortgage demand flat as rates stay stuck at 6.77%

Plus: Better sues former CEO as battle for control intensifies

August 19, 2026

🐶 The dog days of August roll on, and we're back with your mortgage industry roundup. Here's what you need to know. 792 words, 3½ minutes.

Disclaimer: Average mortgage rates as of August 18, 2026. © MND Daily Rate Index.

1. Mortgage demand flat as rates stay stuck at 6.77%

Total application volume was essentially unchanged last week, down just 0.4%, as rates held at 6.77% for the third consecutive week. With no movement in either direction, there was little incentive for buyers or homeowners to act.

  • Purchase apps: down 2% for the week, down 3% year over year

  • Refi apps: up 2% for the week, down 18% year over year

  • Average refi loan size: $282,200, lowest since June 2025

Rates have moved higher to start this week, which could push demand lower in next week's report.

"Rates and applications changed little last week, with just a slight increase in refinances for conventional and VA loans. Borrowers with larger loan sizes remain less likely to refinance at these levels, the average refi loan size dipped to $282K, the lowest since June 2025. Affordability difficulties have also reemerged as a reason for homebuyers to delay purchase decisions." Joel Kan, MBA

2. Better sues former CEO as battle for control intensifies

Better Home, in a complaint filed Tuesday in the U.S. Southern District of New York, alleges Garg violated two federal securities laws by “cultivating a coalition of shareholders” and “flooding the market with misleading statements” to reinstall himself as CEO.

The company called it an "illegal, scorched-earth campaign" and says it has "incontrovertible evidence" Garg is not acting alone — naming Activant Capital, Tony Bobulinski, and others as part of the group.

Garg solicited shareholder support for at least a week before filing the required proxy solicitation statement, and his amended Schedule 13D shows the group controls just 13.7% of shares — inconsistent with his public claim of majority support.

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3. More Nuggets

💵 Ishiba, Phoenix Suns' billionaire owner, is getting slammed on Wall Street. (12 News)

🔥 America’s 10 hottest ZIP codes in 2026. (The Hill)

🏘️ July housing starts fall as both single-family and multifamily slow. (HousingWire)

🏥 NAR pushes for health coverage options for Realtors. (NAR News)

🔫 ION: The $1K laser mosquito zapper. (the Hustle)

4. NAR: Pending home sales dip in July

Pending home sales fell 2.3% in July to their lowest level since January, as the year's highest mortgage rates landed right in the middle of peak buying season. Contract activity dropped in all four regions month over month, with the West posting the steepest year-over-year decline at 7.1%.

Pending sales remain 30% below their pre-pandemic 2019 level even as payroll employment sits 5% above that benchmark — a gap Yun called "sizable pent-up demand" waiting to be unlocked once rates stabilize and more supply arrives.

"The highest mortgage rates of the year hit right in the middle of summer, and that's pulling back contract signings," said Lawrence Yun, NAR's chief economist. "Home prices are at record highs, so houses are sitting longer and fewer buyers are bidding above asking."

5. IMBs originate most mortgages but can't access FHLBank funding. CHLA wants that fixed

Independent mortgage banks originate 84% of U.S. mortgages but remain ineligible for Federal Home Loan Bank membership — giving banks, credit unions, and insurers access to government-sponsored liquidity that IMBs don't have.

CHLA is using FHFA's current FHLBank activity proposal to renew its push for qualified IMBs to gain membership access.

The group also wants guardrails: no expanded FHLBank mortgage purchasing that would replicate Fannie and Freddie functions, and a requirement that existing members demonstrate an ongoing connection to mortgage lending to keep their benefits.

The implicit point — if active mortgage lenders can't get in, institutions that rarely make mortgages shouldn't get to stay.

☀️ You’re all caught up. See you on Friday!

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