Mortgage Applications Today: Home Loan and Refinancing Drop Another Week as Rates Inch Higher

Mortgage applications fell for the fourth straight week—down 0.8% for the week ending April 3, according to the Mortgage Bankers Association.

The Market Composite Index, a measure of mortgage loan application volume, decreased 0.8% on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index decreased 1% compared with the previous week.

The Refinance Index decreased 3% from the previous week and was 4% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index increased 1% compared with the previous week and was 7% lower than the same week one year ago.

Borrowers who may be sitting on the sidelines are dealing with rising mortgage interest rates. The average 30-year fixed rate for a home loan increased to 6.46% for the week ending April 2, according to Freddie Mac.

That marks the fifth straight week of rising rates. The prior week, it registered at 6.38%; during the same period in 2025, rates averaged 6.64%.

"Higher mortgage rates and continued economic uncertainty weighed down on mortgage applications
again last week. While mortgage rates saw a slight reprieve, with the 30-year fixed rate decreasing to
6.51%, many potential refinance borrowers have been frozen out by the sharp increase over the
past month. The pace of refinance applications was at its lowest level since December 2025,” said Joel
Kan, MBA’s vice president and deputy chief economist.

The refinance share of mortgage activity decreased to 44.3% of total applications from 45.3% the previous week. The adjustable-rate mortgage share of activity increased to 8.6% of total
applications.

The Federal Housing Administration share of total applications decreased to 19.3% from 19.5% the prior week. The Veterans Affairs share of total loan applications remained unchanged at 16.1% from the prior week. The USDA share of total applications remained unchanged at 0.5% from the prior week.

“Overall purchase activity has also been adversely impacted by current conditions—purchase applications were 7% lower on a year-over-year basis, the first annual decline since January 2025," Kan said.

"However, certain loan types and geographic segments are faring better than others because of lower rates on ARM and FHA loans, as well as growing housing inventory in some local markets. Applications for FHA purchase applications were up 5% over the week, supported by the FHA mortgage rate being about 30 basis points lower than the conventional mortgage rate.”

Contract rates

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($832,750 or less) decreased to 6.51% from 6.57%, with points decreasing to 0.61 from 0.65 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) decreased to 6.54% from 6.59%, with points decreasing to 0.35 from 0.43
(including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.22% from 6.25%, with points decreasing to 0.73 from 0.81 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.90% from 5.89%, with points decreasing to 0.74 from 0.75 (including the origination fee) for 80% LTV loans.
The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs decreased to 5.60% from 5.67%, with points increasing to 0.68 from 0.56 (including the origination fee) for 80% LTV loans. The effective rate decreased 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.