Mortgage application volume surged 20.4% during the week ended February 28, as the average rate for a 30-year fixed-rate mortgage dropped to 6.73%, down from 6.88% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Most of the increase was due to a spike in applications for refinances, which jumped 37% compared with the previous week. Year-over-year, applications for refinances were up 83%.
Applications for purchases increased 9% compared with the previous week and were up 2% compared with the same week one year ago.
“Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S.,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Those factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024. At 6.73 percent, the rate is now at its lowest level since December 2024.
“Additionally, the FHA rate dipped to 6.42 percent,” Kan says. “Refinance activity was at its fastest pace since October 2024, as conventional refinance applications rose 34 percent and government refinance applications increased by 42 percent over the week. The move in government refinances was driven by a 75 percent increase in VA loans, which have been prone to large changes in recent months.”
“Purchase activity typically ramps up this time of year and did last week, continuing its run ahead of last year’s pace,” Kan adds. “These are more green shoots as we head into the spring homebuying season.”
The refinance share of mortgage activity increased to 43.8% of total applications, up[ from 38.9 % the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 5.8% of total applications.
Photo: Ben Mullins