U.S. Mortgage Applications Down 4.4% in the May 1 Week, Second Straight Decline
Summary
- Purchase applications -3.7% w/w, first decrease in three weeks; refinancing loan applications -5.0% w/w, second consecutive drop.
- Effective interest rate on 30-year fixed loans up 10bps to 6.64%, a four-week high.
- Average loan size up for the fifth straight week, highest level since the March 6 week.
Mortgage applications fell 4.4% w/w (+14.9% y/y) in the week ending May 1 following a 1.6% drop in the week ending April 24 and two consecutive w/w increases, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. The latest reading was the second successive w/w decline and the deepest since the March 27 week, easing the index to a three-week-low 285.3. Applications for loans to purchase a house slid 3.7% (+5.1% y/y) in the May 1 week, the first w/w slide since the April 10 week, after a 1.2% rise in the previous week. Applications for loan refinancing dropped 5.0% (+28.8% y/y) in the May 1 week following a 4.4% decline in the April 24 week and two straight w/w gains.
The effective interest rate on a 30-year fixed-rate loan rose 10bps to 6.64% in the week ending May 1, the highest since the April 3 week, from 6.54% in the week ending April 24; it was above its most recent low of 6.24% in the February 27 week but below a peak of 8.12% in the week of October 20, 2023. The rate on 15-year fixed-rate mortgages rose 9bps to 6.01% in the May 1 week after holding at 5.92% in the previous two weeks; it was up from a low of 5.60% in the week of September 20, 2024 but down from a high of 7.44% in the week of October 27, 2023. The rate on 30-year jumbo loans increased 4bps to 6.60% in the May 1 week from 6.56% in the prior two weeks; it was above a recent low of 6.25% in the February 27 week but below a high of 7.99% in the week of October 27, 2023. Meanwhile, the rate on a 5-year ARM fell 12bps to 5.90% in the May 1 week, the first w/w decline in three weeks, from 6.02% in the previous week (the highest since the week of August 29, 2025); it was above a low of 5.38% in the February 20 week but below a high of 7.31% in the week of October 27, 2023.
The share of applications for refinancing an existing loan fell to 42.0% of total applications in the week ending May 1—the eighth w/w fall in nine weeks and the lowest level since the week of August 1, 2025—after declining to 42.5% in the week ending April 24; it remained below a peak of 61.9% in the January 16 week but above a low of 34.6% in the week of May 23, 2025. The adjustable-rate mortgage (ARM) share of activity rose to 8.8% in the May 1 week, the highest since the March 6 week, from 8.3% in the prior week; it was below a peak of 12.9% in the week of September 12, 2025 but above a low of 4.7% in the week of January 3, 2025.
The average size of a mortgage loan, up for the fifth consecutive week, rose 0.7% w/w (2.7% y/y) to $410,900 in the May 1 week, the highest level since the March 6 week, after a 2.0% rise to $407,900 in the April 24 week. The average size of a purchase loan grew 1.5% (5.2% y/y) to $467,300 in the May 1 week—the third w/w gain in four weeks and a record high—following a 1.0% rebound to $460,200 in the prior week. The average size of a loan to refinance a mortgage fell 1.3% (+2.3% y/y) to $332,800 in the May 1 week, the first w/w fall since the March 27 week, after a 2.3% rise to $337,100 in the previous week.
The Mortgage Bankers Association Survey covers 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. The base period and value for all indexes is March 16, 1990=100. The figures for weekly mortgage applications and interest rates are available in Haver’s SURVEYS database.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
More Economy in Brief
