Homes in Daly City, California, US, on Tuesday, May 19, 2026. <\/p>\n
Jason Henry | Bloomberg | Getty Images<\/p>\n
Overall mortgage demand essentially flattened last week, as interest rates continue to hover in a narrow range. Borrowers are also pulling back from riskier loans, as they are offering smaller advantages.<\/p>\n
Total mortgage application volume increased 0.04% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. <\/p>\n
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, decreased to 6.57% from 6.59%, with points increasing to 0.65 from 0.63, including the origination fee, for loans with a 20% down payment. <\/p>\n
The average rate for a five-year ARM, or adjustable-rate mortgage, increased to 5.79% from 5.68%. ARMs are considered riskier because they reset to the market rate after the fixed term. They do generally offer lower rates, but the spread between ARMs and the 30-year fixed is shrinking. ARM loans accounted for just 7.6% of all applications last week, the lowest share since January and down from a high of 9.6% in mid-May.<\/p>\n
“Mortgage rates eased slightly last week as oil prices declined. As a result, mortgage applications increased modestly, with an uptick in purchase activity offsetting a smaller decline in refinances,” said Joel Kan, vice president and deputy chief economist at the MBA, in a release.<\/p>\n
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