Mortgage rates in the U.S. climbed to their highest level in five weeks, but homebuyers continued returning to the housing market despite rising borrowing costs and economic uncertainty.
According to the Mortgage Bankers Association, total mortgage application volume rose 1.7% last week. Applications for home purchases increased 4% from the previous week and were 7% higher than a year earlier.
The average interest rate for a 30-year fixed mortgage edged up to 6.46%, the report said. Economists noted that buyers appear to be adjusting to a prolonged period of elevated rates.
Mortgage rates move to highest level in 5 weeks, but homebuyers shake it off https://t.co/j2sStJQNrr
— CNBC (@CNBC) May 13, 2026
Joel Kan of the Mortgage Bankers Association said potential buyers largely brushed aside concerns tied to inflation and the Iran conflict. The National Association of Realtors also reported stronger buyer activity in recent weeks.
Meanwhile, refinancing activity slipped 1% for the week, though it remained above year-ago levels.
Mortgage rates moved even higher this week after stronger-than-expected inflation data and continued uncertainty surrounding the Iran war affected financial markets.
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