Mortgage applications dipped once again recently, though the rate of decline slowed considerably. The Home Loan Bankers Association (MBA) reported a 0.8% decline on a seasonally changed basis for the week ending April 3.
Refinance activity continued to deteriorate, with the Refinance Index falling 3% from the previous week and now sitting 4% listed below year-ago levels. The slowdown reflects a sharp drop in debtor incentive following the current run-up in rates.
Purchase activity revealed modest durability, with the seasonally changed Purchase Index rising 1% from the previous week. Nevertheless, demand remains softer total, with purchase applications down 7% compared to the same time in 2015– the first annual decline given that early 2025.
MBA’s Joel Kan stated” higher home loan rates and continued economic unpredictability weighed down on mortgage applications once again last week,” including that refinance need has dropped to its least expensive level since December 2025. He also explained that some segments of the market are holding up much better, particularly FHA and ARM loans, which continue to take advantage of reasonably lower rates and enhancing housing inventory in specific markets.
Application structure moved slightly, with re-finance share decreasing to 44.3% from 45.3% the prior week. ARM share increased to 8.6%. FHA share edged down to 19.3%, while VA share held steady at 16.1% and USDA share remained the same at 0.5%.
Home Mortgage Rate Summary:
- 30yr Fixed: 6.51% (from 6.57%)|Points: 0.61 (from 0.65)
- 15yr Fixed: 5.90% (from 5.89%)|Points: 0.74 (from 0.75)
- Jumbo 30yr: 6.54% (from 6.59%)|Points: 0.35 (from 0.43)
- FHA: 6.22% (from 6.25%)|Points: 0.73 (from 0.81)
- 5/1 ARM: 5.60% (from 5.67%)|Points: 0.68 (from 0.56)