Mortgage Applications Edge Down As Refis Stall, Purchase Demand Weakens

Mortgage applications decreased 0.8% from one week earlier, according to data from the Mortgage Bankers Association (MBA)’s weekly mortgage applications survey for the week ending April 3. 

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. 

“Higher mortgage rates and continued economic uncertainty weighed down on mortgage applications again last week,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement. “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.

“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,” he added. “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.” 

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

The Federal Housing Administration (FHA) share of total applications decreased to 19.3%, down from 19.5% the week prior. The U.S. Department of Veterans Affairs (VA) share remained unchanged at 16.1%, as did the U.S. Department of Agriculture (USDA) share at 0.5%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) decreased to 6.51%, down 6 basis points from a week earlier. The average rate for 30-year fixed mortgages with jumbo loan balances decreased 5 bps to 6.54%.

The average rate for 30-year fixed mortgages backed by the FHA decreased 3 bps to 6.22%, while the average rate for 5/1 ARMs decreased 7 bps to 5.60%.

Meanwhile, 15-year fixed-rate mortgages bucked the trend as rates rose 1 bps to 5.90%.

Xactus Mortgage Intent Index

Xactus‘s Mortgage Intent Index — which analyzes aggregated, anonymized credit-pull activity across the Xactus Intelligent Verification Platform — declined to 138.3, down from last week’s reading of 143.1.

“The market continues to soften amid economic uncertainty and elevated interest rates,” said Thomas Lloyd, chief strategy officer for Xactus. “Mortgage intent declined 3.35% week over week and is nearly 10% below the same period last year.”

Lloyd said that despite this pullback, earlier index performance “suggests underlying demand remains, with many borrowers paused in anticipation of lower rates and greater geopolitical stability.”