US Mortgage Applications Decline in the Week Ending May 29

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, May 29, the Market Composite Index—a measure of mortgage loan application volume—decreased 2.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 13.0%.

The Refinance Index declined 2% from the previous week but was 20% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 3% from one week earlier. On an unadjusted basis, the Purchase Index decreased 14% compared with the prior week but was 7% higher than the same week one year ago.

In remarks accompanying the release, MBA Vice President and Deputy Chief Economist Joel Kan said:

“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. 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.

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%.”