Mortgage applications increased decently recently, as stronger purchase activity more than balance out a minor decrease in refinances. The Mortgage Bankers Association (MBA) reported a 1.7% increase in total application volume on a seasonally changed basis for the week ending Might 8.
The gain was driven totally by home purchase demand, which continued to reveal resilience regardless of home loan rates staying near current highs. The seasonally adjusted Purchase Index increased 4% from the previous week and was 7% greater than the same week one year earlier.
Refinance activity, on the other hand, edged lower. The Refinance Index decreased 1%week over week however remained 28 %above year-ago levels. However, refinance share slipped to its lowest point considering that July 2025, showing the minimal reward for many debtors to re-finance at existing rate levels.
The average 30-year fixed home loan rate increased somewhat to 6.46% from 6.45%, marking the greatest level in 5 weeks. Regardless of the uptick, purchase need enhanced across all major loan categories. Keep in mind: this information was gathered before the rate spike at the end of the week (recorded in MND’s daily rate index)
MBA’s Joel Kan said, “Purchase applications were higher over the week and 7 percent ahead of in 2015’s rate, with all loan types revealing increases in purchase activity, as potential property buyers shook off the existing financial and mortgage rate unpredictabilities and went back to the marketplace.”
Kan likewise noted that re-finance applications softened somewhat, led by standard and VA refinances. Refinance activity accounted for just over 40% of overall applications, the lowest share seen because mid-2025.
Application composition moved modestly, with refinance share decreasing to 40.8% from 42.0% the previous week. ARM share held steady at 8.8%. FHA share increased somewhat to 17.9%, while VA share stayed the same at 14.9% and USDA share remained at 0.5%.
Mortgage Rate Summary:
- 30yr Fixed: 6.46% (from 6.45%)|Points: 0.63 (from 0.66)
- 15yr Fixed: 5.83% (unchanged)|Points: 0.68 (from 0.73)
- Jumbo 30yr: 6.48% (from 6.47%)|Points: 0.55 (from 0.47)
- FHA: 6.16% (from 6.12%)|Points: 0.75 (from 0.74)
- 5/1 ARM: 5.70% (from 5.60%)|Points: 0.86 (from 0.83)