Mortgage Services

Mortgage applications bounced higher last week after the holiday-shortened period, though the increase largely reflected a normalization in activity rather than a meaningful improvement in underlying demand. The Mortgage Bankers Association (MBA) reported a 10.8% increase in total application volume on a seasonally adjusted basis for the week ending June 5. The gain was led by refinance activity, which rose 15% from the previous week. Refinance demand was also 20% higher than the same period one year ago, showing that activity remains well ahead of last year’s pace despite continued rate volatility. Purchase demand also moved higher. The seasonally adjusted Purchase Index increased 7% week over week and was 4% above year-ago levels. The average 30-year fixed mortgage rate rose to 6.60% from 6.57%, but borrowers still found pockets of opportunity as markets continued to react to developments in the Middle East. MBA’s Mike Fratantoni said mortgage rates were volatile last week, noting that “while the average rate was up slightly,” both refinance and purchase applications rebounded following the holiday week. Fratantoni added that the 30-year fixed rate now stands at 6.60%, while refinance and purchase activity each recovered from the prior week’s holiday-affected pace. Adjustable-rate mortgage activity also edged higher. The ARM index increased 12% over the week, and ARM share rose to 8.6% from 8.5%. Meanwhile, the refinance share of mortgage activity climbed to 40.2% from 38.0%.

Existing-home sales picked up in May, rising to their highest level since December as improving affordability and steady household income gains continued to support demand. Sales increased 3.2% from April to a seasonally adjusted annual rate of 4.17 million , and were also 3.2% higher than a year ago. “More Americans are on the move,” said NAR Chief Economist Lawrence Yun, noting that sales reached their strongest pace since December. He said improving affordability is helping drive the momentum, adding that mortgage rates remain below last year’s level and are roughly in line with the long-term historical average. Inventory continued to improve in May, though supply remains relatively tight by historical standards. Total housing inventory rose to 1.55 million units , up 3.3% from April and 0.6% from a year earlier, representing a 4.5-month supply of homes. Home prices pushed to a fresh record high in May, underscoring still-solid demand against a backdrop of limited supply. The median existing-home price climbed to $429,300 , up 1.3% from a year ago and marking the 35th consecutive month of annual price gains. Affordability also improved year-over-year, with the Housing Affordability Index rising to 105.6 from 97.5 a year earlier. Yun said income gains are still outpacing home-price growth in most parts of the country, helping keep buyers in the market despite rates ticking up from earlier this year.

Mortgage applications eased again last week even as borrowing costs moved lower, suggesting that modest rate relief was not enough to bring borrowers back in force. The Mortgage Bankers Association (MBA) reported a 2.5% decrease in total application volume on a seasonally adjusted basis for the week ending May 29. The decline was led by refinance activity, which slipped 2% from the previous week. Refinance demand remained 20% higher than the same period one year ago, however, underscoring that activity is still running above 2025’s pace even as it softens week to week. Purchase demand also pulled back, though the move was more modest. The seasonally adjusted Purchase Index fell 3% week over week and was still 7% above year-ago levels. The average 30-year fixed mortgage rate decreased to 6.57% from 6.65%, but the drop was not enough to spark a meaningful pickup in demand. MBA’s Joel Kan said easing energy prices tied to developments in the Middle East helped push rates slightly lower, though “the retreat in rates... did not lead to an increase in mortgage applications.” Kan added that purchase applications were still ahead of last year’s pace, but were at their slowest weekly level since April, while refinance activity was at its weakest since last June. He also noted that the 30-year fixed rate eased to 6.57%, while the 5-year ARM rate edged higher, reflecting a flattening yield curve.