Mortgage Applications Today: Home Loan Demand Drops 10.9% Following 4-Week Growth Streak

Home loan applications decreased 10.9% for the week ending March 13, according to the Mortgage Bankers Association. The decrease comes after four consecutive weeks in which demand for mortgage applications was on the rise.

The Market Composite Index, a measure of mortgage loan application volume, decreased 10.9% 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 19% from the previous week and was 69% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index increased 2% compared with the previous week and was 12% higher than the same week one year ago.

The decrease in home loan applications comes as mortgage interest rates significantly increased to the highest level in five weeks. The average rate on a 30-year fixed home loan jumped to 6.11% for the week ending March 12, according to Freddie Mac. But rates are still lower than this time last year, when it averaged 6.65% in 2025.

“Mortgage rates continued to move higher, driven by increasing Treasury yields as the conflict in the Middle East kept oil prices elevated, along with the risk of a broader inflationary shock. Mortgage rates increased across the board, with the 30-year fixed rate rising to 6.30 percent, the highest rate since December 2025,” said Joel Kan, MBA’s vice president and deputy chief economist.

The refinance share of mortgage activity decreased to 52.3% of total applications from 57.8% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8% of total applications.

The Federal Housing Administration (FHA) share of total applications increased to 19.4% from 17.1% the week prior. The Veterans Affairs share of total loan applications increased to 16.7% from 16.1% the week prior. The USDA share of total applications remained unchanged at 0.4% from the week prior.

"Rates were around 20 basis points higher than they were two weeks ago and this caused a reversal in refinance activity, particularly for conventional refinance applications, which decreased 27 percent over the week," Kan explained.

"Government refinances also declined but by 5 percent, as FHA rates have not increased quite as rapidly. Purchase applications remained steady despite the higher rates, with conventional purchase applications unchanged and growth in both FHA and VA segments. Overall purchase applications remained ahead of last year’s pace, supported by higher inventory and slowing home-price growth in many markets."

Contract rates

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 6.30% from 6.19%, with points increasing to 0.63 from 0.58 (including the origination fee) for 80% loan-to-value ratio (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 6.39% from 6.26%, with points increasing to 0.34 from 0.30 (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 6.08% from 6.02%, with points remaining unchanged at 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 5.66% from 5.54%, with points increasing to 0.73 from 0.68 (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 5.65% from 5.26%, with points increasing to 0.67 from 0.64 (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.