U.S. homebuyers and refinancers staged an aggressive comeback last week, taking swift advantage of slightly lower interest rates just as Wall Street braces for the Federal Reserve’s policy decision on Wednesday.
The Mortgage Bankers Association (MBA) reported that total mortgage applications rose 11% for the week ending May 2, snapping back from the 4.2% decline seen the week before.
The jump, which ranks among the top four weekly gains in 2025 so far, signals a notable resurgence in housing market activity amid mixed economic signals.
Rates Drop, Applications Spike
The average 30-year fixed mortgage rate for conforming loan balances—$806,500 or less—eased to 6.84%, down from 6.89% a week earlier. That small dip triggered a wave of new demand, both from buyers and homeowners looking to refinance.
Purchase applications increased by 11%, while refinance activity rose by the same margin. Year-over-year, refinancing volumes are now 51% higher, a dramatic swing after months of tepid activity.
“With rates …