Mortgage Applications Retreat in May, with ARMs Gaining Share

Mortgage application activity declined 5.5% month-over-month in May 2026 due to higher rates, with the 30-year fixed-rate mortgage averaging 6.54%, though adjustable-rate mortgages gained share to 9.0% of total applications as borrowers sought lower initial rates. Year-over-year, total mortgage applications remained 14.2% higher, with refinance applications up 26.4% and purchase applications rising 6.2%, while ARM applications increased 38.2% compared to May 2025.