Prospective homebuyers in the first week of May “shrugged off” elevated mortgage rates and a slew of economic uncertainties to submit mortgage applications at a pace 7% faster than a year ago, the Mortgage Bankers Association (MBA) reported Wednesday.

Total mortgage application volumes rose by 1.7% on a seasonally adjusted basis over the week ending May 8, according to the MBA, ending two consecutive weeks of declines.

Even as higher mortgage rates have doused refinance activity, purchase mortgage demand has remained resilient amid economic volatility in recent weeks. Purchase applications were 5% and 21% higher from a year ago during the last two weeks of April, illustrating the persistence of pent-up purchase demand.

The MBA’s Market Composite Index, a measure of mortgage loan application volume, was 2% higher than a week ago on an unadjusted basis. In commentary accompanying the weekly update, the trade group’s deputy chief economist, Joel Kan, flagged that the refinance share of total applications fell to its lowest level since last July at around 40.8%.

Refinance share of total applications had been 42% and 42.5% over the preceding weeks. The refinance component index declined 1% from the previous week though remained 28% higher than the same week last year.

“Refinance applications declined slightly, led by conventional and VA refinancings,” explained Kan, adding that mortgage rates were “generally higher last week, with the 30-year fixed rate at 6.46%, its highest level in five weeks.” Average 30-year rates were 6.45% and 6.37% over the preceding weeks, according to MBA data.

Freddie Mac, by comparison, assessed the typical 30-year rate was 6.37% during the first week of May. Despite increases from around 6% before the Iran war started on Feb. 28, mortgage rates remain 0.3% to 0.4% below year-ago levels, translating to more affordable mortgage interest costs for new purchase applicants than a year ago.

The seasonally adjusted purchase component index thus rose 4% from the previous week while the unadjusted purchase index notched 7% growth over the year. All loan types posted increases, Kan noted.

The share of applications for home loans insured by the Federal Housing Administration (FHA) rose to 17.9% from 17.7% and 17.2% over the previous weeks as the share of applications for loans backed by the Department of Veterans Affairs (VA) was unchanged over the week at 14.9%, levels that VA share has maintained for the past month.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA edged upward to 6.16% from 6.12% the previous week and 6.09% during the week ending April 24.

Overall purchase mortgage rate-lock volumes were 9% higher over the year in the month of April, hedging and market intelligence platform Optimal Blue reported this week. Conversely, refinance rate-lock volumes slid to 23% of overall lock activity in April, after rising to 44% in the first quarter on multiyear lows in mortgage rates.