Overview
- The Mortgage Bankers Association reported Wednesday that total applications rose 1.7% for the week ending May 8, with purchase loans up 4% on the week and 7% above a year ago as the average 30-year rate reached 6.46%, a five-week high.
- Mortgage News Daily said the 30-year average climbed to 6.57% after Wednesday's hotter producer price reading and renewed Iran war worries, marking the highest level since March.
- Refinancing slipped, with the refi index down 1% for the week and the refi share falling to 40.8% of applications, the lowest since July 2025.
- Consumer inflation ran at 3.8% year over year in April and the 10-year Treasury hovered near 4.45%, lifting borrowing costs, yet narrower mortgage spreads near about 1.9% have kept quoted rates from breaking 7%.
- Realtors and market trackers report more buyer showings and activity this spring, though ICE estimates buying power is down about 4% from February as limited inventory and higher prices strain first-time shoppers.