Mortgage applications dropped for the third consecutive week, falling 3.9% on a seasonally adjusted basis for the week ending May 30, according to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association (MBA). The results include adjustments for the Memorial Day holiday.
On an unadjusted basis, total application volume tumbled 15% from the prior week. Refinance applications were down 4% week over week, while purchase applications fell by the same margin.
Still, both segments posted gains compared to this time last year — refinances gained 42% annually, and purchases were up 18%.
“Most mortgage rates moved lower last week, with the 30-year fixed rate declining to 6.92% and staying in the 6.8 to 7% range since April,” noted Joel Kan, MBA’s vice president and deputy chief economist. “Mortgage applications decreased over the week, but continue to exhibit annual gains, with purchase applications running 18% ahead of last year’s place.”
“Government purchase applications were little changed over the week, driven by a slight increase in FHA purchase applications,” Kan continued. “Refinance activity fell across both conventional and government segments, and the overall average refinance loan size was the smallest since July 2024, as potential borrowers hold out for larger rate drops.”
By The Numbers
- Refinance share of activity: 35.2% (up from 34.6% the previous week)
- Adjustable-rate mortgages (ARMs): 7.1% share (down from 7.7%)
- FHA share: 18.7% (up from 17.9%)
- VA share: 12.6% (up from 12.3%)
- USDA share: Unchanged at 0.5%
Rates Snapshot (Average Contract Rates, 80% LTV)
- 30-year conforming fixed: 6.92% (down from 6.98%), points down to 0.66
- 30-year jumbo fixed: 6.92% (down from 6.93%), points down to 0.60
- 30-year FHA fixed: 6.68% (up from 6.66%), points down to 0.93
- 15-year fixed: 6.25% (up from 6.23%), points steady at 0.67
- 5/1 ARM: 6.14% (down from 6.22%), points down to 0.43
MBA’s weekly survey has been conducted since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions.
