Home mortgage applications pulled back recently as increasing rates weighed on property buyer demand, while refinance activity remained mostly flat. The Mortgage Bankers Association (MBA) reported a 2.3% reduction in total application volume on a seasonally changed basis for the week ending May 15.
The decline was driven primarily by softer purchase activity. The seasonally changed Purchase Index fell 4% from the prior week, though purchase need remained 8% higher than the exact same week one year earlier.
Refinance activity was mainly unchanged in spite of the increase in rates. The Refinance Index dipped simply 0.1% week over week but stayed 35% above year-ago levels.
The average 30-year set home loan rate increased to 6.56% from 6.46%, reaching its greatest level in 7 weeks. According to MBA, concerns surrounding inflation, higher fuel costs, and growing worries over global public debt assisted push Treasury yields– and mortgage rates– higher throughout the week.
MBA’s Joel Kan stated, “Overall applications were down to the lowest level in 5 weeks as purchase borrowers pulled back throughout standard and federal government loan types. Refinance applications were basically unchanged, with a decrease in government refinances and an increase in traditional refinancing, most likely as the increase in rates came late in the week.”
Kan also kept in mind that adjustable-rate mortgages got traction as debtors searched for lower-rate alternatives. ARM loans accounted for almost 10% of overall applications, the greatest share considering that October 2025, with the average ARM rate sitting approximately 80 basis points below the 30-year set rate.
Application composition moved decently, with refinance share increasing to 41.9% from 40.8% the previous week. ARM share increased to 9.6%, while FHA share held steady at 17.9%. VA share slipped to 14.4% from 14.9%, and USDA share edged down to 0.4% from 0.5%.
Mortgage Rate Summary:
- 30yr Repaired: 6.56% (from 6.46%)|Points: 0.60 (from 0.63)
- 15yr Repaired: 5.93% (from 5.83%)|Points: 0.73 (from 0.68)
- Jumbo 30yr: 6.58% (from 6.48%)|Points: 0.38 (from 0.55)
- FHA: 6.24% (from 6.16%)|Points: 0.67 (from 0.75)
- 5/1 ARM: 5.76% (from 5.70%)|Points: 0.85 (from 0.86)