Kady Homes

Mortgage applications fell 8.5% during the week ending before Memorial Day as higher mortgage rates discouraged borrowers, according to the Mortgage Bankers Association. Refinancing applications dropped sharply by 18%, while purchase loan applications slipped 0.4%.

MBA economist Joel Kan said the average 30-year fixed mortgage rate climbed to 6.65%, the highest since August 2025, causing many homeowners to delay refinancing. Daily mortgage rates were around 6.61%, while the weekly average stood at 6.51%.

Despite the weekly slowdown, mortgage activity remains above last year’s levels:

● Refinancing applications were up 19% year over year.
● Purchase applications increased 5% compared to the same week in 2025.

The average home purchase loan size reached a record $473,600, reflecting reduced activity among buyers seeking smaller loans due to affordability pressures.

Adjustable-rate mortgages (ARMs) made up 9.4% of applications, slightly below the previous week’s 10% peak, as buyers continued seeking lower monthly payments amid elevated rates.

Higher mortgage rates, inflation concerns, geopolitical tensions, and rising construction costs continue to weigh on the housing market. Existing-home purchase contracts rose modestly in April, but new single-family home sales declined 2.4% year over year. Economists expect mortgage rates and housing affordability challenges to remain ongoing concerns.

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