Mortgage applications declined last week, reversing some of the prior period’s gains as rates climbed to their highest level in a month. The Mortgage Bankers Association (MBA) reported a4.4% decreaseon a seasonally adjusted basis for the week ending May 1.
The decline was broad-based, with both purchase and refinance activity moving lower. The Refinance Index fell5%from the previous week but remained29%higher than the same week one year ago.
Meanwhile, the seasonally adjusted Purchase Index decreased4%week over week and was still5%above last year’s level. In the bigger picture, purchase apps remain closer to the highest levels of the past few years.
The average30-year fixed mortgage rateincreased to6.45%from 6.37%, marking the highest reading in a month and weighing on overall application volume. Higher borrowing costs, driven in part by ongoing geopolitical tensions, continue to limit refinance incentives while creating some hesitation among prospective buyers.
MBA’s Joel Kan said, "Mortgage rateslast week increased to their highest level in a month... elevated rates and shrinking refinance incentives continued to weigh on activity... The refinance share of applications was the lowest since August 2025."
Kan also noted that while purchase activity softened on a weekly basis, it remains above last year’s pace. The average purchase loan size rose to a record$467,300, suggesting that higher-priced segments may be driving activity while some entry-level buyers hold back amid affordability pressures.
Application composition shifted slightly, with refinance share decreasing to42.0%from 42.5% the prior week. ARM share increased to8.8%. FHA share rose to17.7%, while VA share edged down to14.9%and USDA share remained unchanged at0.5%.
Source: MND NewsWire
