Homes in a new project in Fontana, California, USA, on Saturday, May 9, 2026.
Kyle Grillot | Bloomberg | Getty Images
Homebuyers appear to be adjusting to the new normal of higher mortgage rates, even the highest in over a month. According to the Mortgage Bankers Association’s seasonally adjusted index, buyer demand for mortgages helped drive overall mortgage application volume up 1.7% last week compared to the previous week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less increased from 6.45% to 6.46%, with points for loans with a 20% down payment decreasing from 0.66 to 0.63, including the origination fee.
Mortgage applications to purchase a home rose 4% this week, 7% higher than the same week a year ago. At the start of the spring real estate market, which coincided with the start of the war with Iran, buyer demand stagnated.
“Potential homebuyers shook off the current economic and mortgage rate uncertainties and returned to the market,” said Joel Kan, an MBA economist, in a press release.
During an April home sales conference call this week, Lawrence Yun, chief economist for the National Association of Realtors, said agents were already reporting an increase in buyer demand in recent weeks.
Get Property Play straight to your inbox
CNBC’s Property Play with Diana Olick covers new and evolving opportunities for real estate investors, delivered weekly to your inbox.
Sign up here to get access today.
The number of applications to refinance a home loan fell 1% this week and was 28% higher than the same week a year ago.
“Refinance applications declined slightly, led by conventional and VA refinances, accounting for just over 40 percent of applications last week, the lowest share since July 2025,” Kan added.
Mortgage rates rose sharply earlier this week in response to less optimistic news about a possible resolution to the Iran war and a hotter-than-expected monthly consumer price report. The average 30-year bond interest rate has risen 14 basis points so far this week, according to a separate survey by Mortgage News Daily.
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.