Mortgage Applications Down 4.4%; Average Loan Size Reaches 36-Year High

Mortgage applications declined for a second week in a row as economists point to economic uncertainty and geopolitical tensions continuing to weigh on activity and drive mortgage rates up.

According to the latest Market Composite Index from the Mortgage Bankers Association (MBA)—its measure of mortgage loan activity volume and includes purchases and refinances—decreased 4.4% on a seasonally adjusted basis from last week’s 1.6% decrease, for the week ending May 1. On an unadjusted basis, the Index decreased 4% compared with the previous week.

“The ongoing conflict in the Middle East continues to push rates higher,” said Joel Kan, MBA’s vice president and deputy chief economist. “Mortgage rates last week increased to their highest level in a month, with the 30-year fixed rate rising to 6.45 percent. As expected, elevated rates and shrinking refinance incentives continued to weigh on activity.”

Added Kan, “Despite purchase applications declining over the week, overall activity remains higher compared to last year’s pace. Additionally, the average loan size on a purchase application increased to $467,300, the highest in the survey’s history dating back to 1990. This increase could indicate that potential first-time buyers, and buyers looking for homes at lower price points, might be the most hesitant to move forward given the economic uncertainty and higher rates.”

MBA’s Refinance Index decreased 5%from the previous week but data shows it was 29% higher than the same week one year ago. MBA reported the refinance share of mortgage of total activity decreased to 42.0% of total applications from 42.5% the previous week.

Kan said the refinance application decline was most notable for conventional and VA loans and that the refinance share of applications reached the lowest point since August 2025.

MBA also reported that the FHA share of total applications increased to 17.7% from 17.2% the previous week. The VA share of total applications decreased to 14.9% from 15.0% the week prior and the USDA share of total applications remained unchanged at 0.5% from the week prior.

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