Saturday, May 9, 2026 at a new residential development in Fontana, California, USA.
Kyle Grillot | Bloomberg | Getty Images
Homebuyers appear to be getting used to the new normal of rising mortgage rates, the highest in more than a month. Buyer demand for mortgages led to a 1.7% increase in total mortgage applications last week compared to 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 of $832,750 or less, including origination fees for loans with a 20% down payment, decreased from 0.66 to 0.63 points and increased from 6.45% to 6.46%.
The number of applications for mortgages to buy homes increased by 4% during the week and by 7% compared to the same week last year. Buyer demand stalled when the spring housing market began, coinciding with the start of the war with Iran.
“Prospective homebuyers have shrugged off the current economic and mortgage rate uncertainty and returned to the market,” MBA Economist Joel Kang said in a release.
Lawrence Yun, chief economist for the National Association of Realtors, said on a conference call this week on April home sales that agents have reported a surge in buyer demand in recent weeks.
Mortgage refinance applications fell by 1% for the week and increased by 28% compared to the same week last year.
“Refinance applications declined slightly, driven by conventional and VA refinances, accounting for just over 40% of applications last week, the lowest percentage since July 2025,” Kang added.
Mortgage rates have risen sharply since the beginning of this week following less optimistic news about a possible resolution to the Iran war and a better-than-expected monthly report on consumer prices. The average 30-year interest rate rose 14 basis points this week, according to a separate Mortgage News Daily survey.
