They seized the man, in his mid-20s, shortly after the attack in Kulcs, 60km (37 miles) south of the capital, in which three people were also wounded.
He allegedly killed his father, brother and grandparents following a row.
His mother, sister and another person were reportedly badly injured and are now being treated in hospital.
Anti-terror police, a rescue helicopter and three ambulances were dispatched to the village in Fejer county.
The man detained was named by police as Jutast Csanad Horvath. His age was given as either 23 or 24.
"There were several wounds on the bodies of the victims caused by a thrusting and cutting tool," police spokesman Laszlo Garamvolgyi was quoted as saying by Reuters news agency.
"The man probably used a large machete in the attack."
Initial reports spoke of a "sword" attack.
Reports that the attacker had seized hostages were denied by police, according to Hungarian news website Delmagyar.
Source: BBC News
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