Despite average mortgage rates increasing this past week, potential homebuyers were active in the market, a sign that they may be getting used to the current economic environment, according to the Mortgage Bankers Association (MBA).
According to the latest Market Composite Index from the MBA—its measure of mortgage loan activity volume and includes purchases and refinances—application activity increased 1.7% on a seasonally adjusted basis from last week’s 4.4% decrease, for the week ending May 7. On an unadjusted basis, the Index increased 2% compared with the previous week.
“Mortgage rates were generally higher last week, with the 30-year fixed rate at 6.46 percent, its highest level in five weeks,” said Joel Kan, MBA’s vice president and deputy chief economist. “Purchase applications were higher over the week and 7 percent ahead of last year’s pace, with all loan types showing increases in purchase activity, as potential homebuyers shrugged off the current economic and mortgage rate uncertainties and returned to the market. Refinance applications declined slightly, led by conventional and VA refinancings, and accounted for a little more than 40 percent of applications last week, the lowest share since July 2025.”
MBA’s Refinance Index decreased 1% from the previous week but data shows it was 28% higher than the same week one year ago.
The seasonally adjusted Purchase Index increased 4% from one week earlier. The unadjusted Purchase Index increased 4% compared with the previous week and was 7% higher than the same week one year ago, the report stated.
MBA reported the refinance share of mortgage of total activity decreased to 40.8% of total applications from 42.0% the previous week.
More from the report: the FHA share of total applications increased to 17.9% from 17.7% the previous week. The VA share of total applications remained unchanged at 14.9% from the week prior and the USDA share of total applications remained unchanged at 0.5% from the week prior.
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