Mortgage demand rises 1.7% even as rates reach five-week peak

Mortgage applications increased 1.7% from one week earlier, according to data from the Mortgage Bankers Association (MBA)’s weekly mortgage applications survey for the week ending May 8.

On an unadjusted basis, the index increased 2% compared with the previous week.

The refinance index decreased 1% from the previous week and 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.

“Mortgage rates were generally higher last week, with the 30-year fixed rate at 6.46%, 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% 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% of applications last week, the lowest share since July 2025.”

The refi share of application activity decreased to 40.8% of total applications, down from 42% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 8.8% of applications.

The Federal Housing Administration (FHA) share of total applications increased to 17.9%, up from 17.7% the week prior. The U.S. Department of Veterans Affairs (VA) share remained unchanged at 14.9%, as did the U.S. Department of Agriculture (USDA) share at 0.5%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased 1 basis point to 6.46%, and rates for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) increased 1 bps to 6.48%.

The average rate for 30-year fixed mortgages backed by the FHA increased 4 bps to 6.16%, while rates for 15-year fixed mortgages remained unchanged at 5.83%. The average rate for 5/1 ARMs jumped 10 bps to 5.70%/

Xactus Mortgage Intent Index

Xactus‘s Mortgage Intent Index — which analyzes aggregated, anonymized credit-pull activity across the Xactus Intelligent Verification Platform — increased to a reading of 137.4.

“Despite a modest increase in the 30-year mortgage rate, mortgage intent rose approximately 1.5% week over week,” said Thomas Lloyd, Xactus’ chief strategy officer. “While the increase is encouraging amid ongoing market volatility, the intent volumes continue to face headwinds, coming in roughly 3.85% below the same week in 2025 and approximately 2.1% lower than the same week last month.”

Lloyd also remarked that the latest reading also marks a second consecutive week of annual declines.