Mortgage Applications Jumped Last Week

Mortgage applications rose 6.3% for the week ending May 5

Approved Mortgage loan application with house key and rubber stamp
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Mortgage applications jumped 6.3% for the week ending May 5, a sign that U.S. homebuyers may be feeling more optimistic about the market after the Federal Reserve indicated it may pause interest rate hikes. 

Key Takeaways

  • Mortgage applications jumped 6.3% for the week ending May 5.
  • The increase came during another week of declining mortgage rates.
  • The average 30-year fixed-rate mortgage ended the week at 6.48%, down 0.2% from the week before.

Purchase applications increased, according to data from the Mortgage Bankers Association, up 5% from one week earlier. The figure is still 32% lower than the same week one year ago. The average 30-year fixed rate was 6.48% at the end of the week, down slightly from 6.5% the week before. 

“Mortgage applications responded positively to a drop in rates last week, as the Fed signaled a potential pause at the current level for the federal funds rate in anticipation of inflation slowing and tightening financial conditions that will slow economic and job growth,” said Joel Kan, MBA’s vice president and deputy chief economist.

Refinancing increased slightly throughout the week, jumping to 28% of total applications from 27.2% the previous week. MBA’s Refinance Index jumped 10% from the previous week, hitting its highest level since September 2022. 

Limited inventory is keeping would-be buyers out of the market, according to Kan. 

“Lower rates from week to week have helped buyers in the market, but limited for-sale inventory remains a challenge for many homebuyers,” he added.

Interest Rates Fall Across the Board

Would-be buyers are sitting out of the market due to inflated interest rates, but the Fed indicated it may pause rate hikes last week and may have renewed enthusiasm. As it stands, experts say, the U.S. housing market hasn’t yet seen its traditional spring jump. 

In April, 21.3% fewer homes were listed for sale compared with last year, and the median price of homes for sale increased 2.5%, according to a report from Despite low inventory, homes spent an average of 49 days on the market because of higher prices, 17 days longer than the same time last year.

Article Sources
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  1. Mortgage Bankers Association, "Mortgage Applications Increase in Latest MBA Weekly Survey."

  2. "April 2023 Monthly Housing Market Trends Report."

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