Mortgage rates move to highest level in 5 weeks, but homebuyers shake it off
Mortgage rates continued to climb higher, but stronger homebuyer demand helped to keep mortgage applications in positive territory.
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Homes at a new development in Fontana, California, US, on Saturday, May 9, 2026.
Kyle Grillot | Bloomberg | Getty Images
Homebuyers appear to be getting used to the new normal of higher mortgage rates, even the highest in over a month. Buyer demand for mortgages helped to push total mortgage application volume up 1.7% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, increased to 6.46% from 6.45%, with points decreasing to 0.63 from 0.66, including the origination fee, for loans with a 20% down payment.
Applications for a mortgage to purchase a home rose 4% for the week and were 7% higher than the same week one year ago. Buyer demand stalled at the start of the spring housing market, which coincided with the start of the war with Iran.
"Potential homebuyers shrugged off the current economic and mortgage rate uncertainties and returned to the market," said Joel Kan, an MBA economist in a release.
During a conference call on April home sales this week, the National Association of Realtors' chief economist, Lawrence Yun, said agents were reporting a surge in buyer demand in just the last few weeks.
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Applications to refinance a home loan fell 1% for the week and were 28% higher than the same week one year ago.
"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," Kan added.
Mortgage rates moved sharply higher to start this week in reaction to less optimistic news on a possible resolution to the Iran war, as well as a hotter-than-expected monthly report on consumer prices. The average rate on the 30-year has moved 14 basis points higher so far this week, according to a separate survey from Mortgage News Daily.
