Mortgage applications decreased recently, reversing some of the prior period’s gains as rates reached their greatest level in a month. The Home Mortgage Bankers Association (MBA) reported a 4.4% decrease on a seasonally adjusted basis for the week ending Might 1.
The decrease was broad-based, with both purchase and refinance activity moving lower. The Refinance Index fell 5% from the previous week however remained 29% greater than the same week one year back.
Meanwhile, the seasonally adjusted Purchase Index decreased 4% week over week and was still 5% above in 2015’s level. In the bigger photo, purchase apps stay closer to the greatest levels of the previous couple of years.
The typical 30-year fixed home mortgage rate increased to 6.45% from 6.37%, marking the highest reading in a month and weighing on total application volume. Greater borrowing costs, driven in part by continuous geopolitical tensions, continue to restrict re-finance incentives while developing some hesitation among potential buyers.
MBA’s Joel Kan stated, “Home loan rates recently increased to their highest level in a month … raised rates and diminishing re-finance rewards continued to weigh on activity … The refinance share of applications was the most affordable considering that August 2025.”
Kan also noted that while purchase activity softened on a weekly basis, it stays above in 2015’s speed. The typical purchase loan size increased to a record $467,300, recommending that higher-priced segments might be driving activity while some entry-level buyers keep back in the middle of cost pressures.
Application composition shifted a little, with re-finance share decreasing to 42.0% from 42.5% the previous week. ARM share increased to 8.8%. FHA share increased to 17.7%, while VA share edged down to 14.9% and USDA share remained the same at 0.5%.
Home Loan Rate Summary:
- 30yr Fixed: 6.45% (from 6.37%)|Points: 0.66 (from 0.61)
- 15yr Repaired: 5.83% (from 5.77%)|Points: 0.73 (from 0.63)
- Jumbo 30yr: 6.47% (from 6.45%)|Points: 0.47 (from 0.38)
- FHA: 6.12% (from 6.09%)|Points: 0.74 (from 0.71)
- 5/1 ARM: 5.60% (from 5.66%)|Points: 0.83 (from 0.96)