Mortgage applications fell again even as 30-year rates eased

Mortgage applications decreased 2.5% from one week earlier, according to data from the Mortgage Bankers Association (MBA)’s weekly mortgage applications Survey for the week ending May 29, 2026.

This week’s results include an adjustment for the Memorial Day holiday, the association noted. On an unadjusted basis, the index decreased 13% compared with the previous week.

The refinance index continued to trend down, decreasing 2% from the previous week. The index, however, was 20% higher than the same week one year ago.

The seasonally adjusted purchase index decreased 3% from one week earlier, and the unadjusted purchase index decreased 14% compared with the previous week and was 7% higher than the same week one year ago.

“The prospect of easing energy prices, given the evolving situation in the Middle East, brought mortgage rates slightly lower last week. The retreat in rates, however, did not lead to an increase in mortgage applications,” said Joel Kan, CMB, MBA’s vice president and deputy chief economist. “Purchase applications remained ahead of 2025’s pace but were at its slowest weekly pace since April, and refinance activity was at its weakest since last June.”

Kan continued, “The 30-year fixed rate decreased to 6.57% while the 5-year ARM rate inched up slightly, reflecting a flattening yield curve, as short-term rates are at risk of increasing while longer-term rates have dropped. Additionally, the ARM index decreased 12% over the week, and the ARM share dropped to 8.5%.”

The refinance share of mortgage activity increased to 38.0% of total applications from 37.5% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.5% of total applications.

The Federal Housing Administration (FHA) share of total applications decreased to 17.0% from 17.2% the week prior. The U.S. Department of Veterans Affairs (VA) share of total applications increased to 14.4% from 13.2% the week prior, and the U.S. Department of Agriculture (USDA) share of total applications remained unchanged at 0.5%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) decreased to 6.57% from 6.65%, and rates for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) decreased to 6.66% from 6.68%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.26% from 6.31%, and the average interest rate for 15-year fixed-rate mortgages decreased to 5.93% from 5.97%. Bucking the trend, the average contract interest rate for 5/1 ARMs increased to 5.82% from 5.81%.

Xactus Mortgage Intent Index

Xactus‘s Mortgage Intent Index — which analyzes aggregated, anonymized credit-pull activity across the Xactus Intelligent Verification Platform — declined week-over-week to a reading of 111.8.

“The Memorial Day holiday contributed to a decline in the non-seasonally adjusted Xactus Mortgage Intent Index, which fell approximately 12.4% from the prior week and 17.4% from the same week last month,” said Thomas Lloyd, Xactus’ chief strategy officer.

Lloyd continued, “However, after four consecutive weeks averaging roughly 3.3% year-over-year declines, the index was down just 0.9% compared to Memorial Day week last year. The improved annual comparison may suggest the market is gradually adjusting to a higher-for-longer interest rate environment.”