Mortgage Applications Today: Home Loan Demand Drops 10.5% in Second Straight Weekly Decline as Rates Climb

Mortgage applications dropped for the second consecutive week as rates moved higher again. Home loan applications decreased 10.5% for the week ending March 20, according to the Mortgage Bankers Association.

The Market Composite Index, a measure of mortgage loan application volume, decreased 10.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 10% compared with the previous week. 

The Refinance Index decreased 15% from the previous week and was 52% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 5% from one week earlier. The unadjusted Purchase Index decreased 5% compared with the previous week and was 5% higher than the same week one year ago.

Mortgage applications dropped again as mortgage interest rates surged yet again. The average rate on a 30-year fixed home loan increased to 6.22% for the week ending March 19, according to Freddie Mac. The week prior, rates came in at 6.11%.

The rate increase still comes in lower than what borrowers faced during the same time in 2025—when rates averaged 6.67%

“The threat of higher-for-longer oil prices continued to keep Treasury yields elevated, and mortgage rates finished last week higher. The 30-year fixed rate rose to 6.43 percent, more than 30 basis points higher than at the end of February and at its highest level since October 2025,” said Joel Kan, MBA’s vice president and deputy chief economist.

The refinance share of mortgage activity decreased to 49.6% of total applications from 52.3% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.1% of total applications.

The Federal Housing Administration (FHA) share of total applications increased to 19.7% from 19.4% the week prior. The Veterans Affairs share of total loan applications decreased to 15.9% from 16.7% the week prior. The USDA share of total applications increased to 0.5% from 0.4% the week prior.

 “Given this period of increasing mortgage rates and diminishing refinance incentives, refinance applications decreased 15 percent as applications across all loan types declined," Kan said. "Purchase applications were also down last week, as higher mortgage rates, coupled with affordability constraints and economic uncertainty, pushed some potential homebuyers to the sidelines.”

Contract rates

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) increased to 6.45% from 6.39%, with points increasing to 0.56 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.  

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) increased to 6.45% from 6.39%, with points increasing to 0.56 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.  

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.15% from 6.08%, with points increasing to 0.75 from 0.70 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.83% from 5.66%, with points increasing to 0.80 from 0.73 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 5.75% from 5.65%, with points increasing to 0.68 from 0.67 (including the origination fee) for 80% LTV loans. The effective rate increased from last week. 

Mortgage rates calculated

Mortgage rates are calculated based on various factors in the economy, and the length of your loan will also figure into the mortgage rate you qualify for.

The 30-year mortgage rate is tied to the yield of the 10-year Treasury note, according to Fannie Mae. As the yield on the 10-year Treasury note moves, mortgage rates follow.

The yield on the 10-year Treasury note is determined by expectations for shorter-term interest rates in the economy over the duration of a bond, plus a term premium.