Cars park in front of homes in Daly City, California, May 19, 2026.
Jason Henry | Bloomberg | Getty Images
Mortgage rates rose slightly last week, but both current homeowners and potential homebuyers returned to the mortgage market, perhaps for a final spring boost. According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume increased 10.8% 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 6.57% to 6.60%, with points for loans with a 20% down payment decreasing from 0.67 to 0.63, including the origination fee.
“Mortgage rates were volatile last week as news from the Middle East continued to drive markets,” said Mike Fratantoni, MBA senior vice president and chief economist. “While the average interest rate increased slightly, there were occasions where borrowers saw slightly lower rates.”
The number of applications to refinance a home loan rose 15% this week, 20% higher than the same week a year ago. At this time last year, the 30-year fixed rate was 33 basis points higher.
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Mortgage applications to purchase a home rose 7% this week and were 4% higher year-over-year. Considering how volatile interest rates were at the start of the spring sales market, demand may have been pushed up a bit as buyers now make a final push before the big days of summer.
Consumers may also benefit from lower interest rates on adjustable-rate mortgages. ARM’s share of activity rose to 8.6% of total applications last week. The average interest rate on a five-year ARM was 5.96% last week
According to a separate report from Mortgage News Daily, mortgage rates remained unchanged earlier this week but could change more significantly with the release of the government’s monthly consumer price index.
“As always, the market is already priced into the median economic forecast,” wrote Matthew Graham, chief operating officer at Mortgage News Daily. “If actual numbers turn out much higher or lower than forecasts, this could cause interest rates to fluctuate in either direction.”
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