Mortgage applications rose sharply last week as interest rates continued their downward trend, marking the sixth consecutive week of declines, according to the Mortgage Bankers Association’s (MBA) latest Weekly Mortgage Applications Survey.
The Market Composite Index increased 11.2% on a seasonally adjusted basis for the week ending March 7. On an unadjusted basis, the index climbed 12% from the previous week.
Refinance activity saw a notable boost, with the Refinance Index jumping 16% compared to the prior week — now 90% higher than the same period last year. Meanwhile, the seasonally adjusted Purchase Index increased 7% week-over-week, and unadjusted purchase applications were up 8% from the previous week and 4% higher than a year ago.
"Mortgage rates declined for the sixth consecutive week, with the 30-year fixed rate dropping to 6.67 percent, the lowest level since October 2024. As a result, applications increased over the week and were up 31 percent from a year ago,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.
“As we enter the spring homebuying season, the purchase index was more than 4 percent higher than a year ago, and activity was up across all loan categories. Government purchase applications experienced an 11 percent increase – helped by the FHA rate dropping to 6.34 percent. Additionally, average loan sizes were higher, with the purchase loan amount hitting $460,800, the highest in the survey dating back to 1990.”
Loan Market Trends
Refinance activity accounted for a larger share of total mortgage applications, rising to 45.6% from 43.8% the previous week. Adjustable-rate mortgage (ARM) applications also edged higher, comprising 7.2% of total applications.
Government-backed loan activity showed mixed results. The FHA share of applications declined slightly to 16.1% from 16.7%, while VA loan applications increased to 15.9% from 14.6%. The USDA share of applications dipped marginally to 0.4% from 0.5%.
Interest Rate Declines Continue
Falling mortgage rates provided a tailwind for borrowers:
- 30-year fixed-rate mortgages: 6.67%, down from 6.73%
- 30-year fixed-rate jumbo mortgages: 6.68%, down from 6.83%
- 30-year fixed-rate FHA mortgages: 6.34%, down from 6.42%
- 15-year fixed-rate mortgages: 6.04%, down from 6.12%
