By Jonathan Ben-Amor

As of Friday May 8th mortgage applications began to drop as higher rates began to climb to their highest point in the month of May. According to the Mortgage Bankers Association (MBA) there was a 4.4% decrease in mortgage loan applications.

The decline affected both refinance and purchase application activity. This years activity in refinance had remained 29% higher than what it was last year. Purchase activity was higher this year as well compared to last year’s 2025 rate of purchase applications.

The average 30 year fixed mortgage rate increased from 6.37% to 6.45% making it the highest rate jump in points and affecting mortgage application rates. This rate jump is driven by geopolitical tensions, which continue to limit potential prospecting buyers.

Mortgage Broker Association Joel Kan said, “Mortgage rates last 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 the average loan price rose to a record $467,300 suggesting that higher priced segments maybe driving activity at the same time holding back first-time, entry-level buyers amid affordability pressures.

Applications for refinancing had decreased from 42.5% – 42.0% ARM share increased to 8.8% FHA share rose to 17.7%, while VA share edged down to 14.9% and USDA share remained unchanged at 0.5%.

Mortgage Rate Summary:

  • 30yr Fixed: 6.45% (from 6.37%) | Points: 0.66 (from 0.61)
  • 15yr Fixed: 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)

Source: Mortgagenewsdaily.com

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