Mortgage application volume increased 20% during the week ended April 4, as the average rate for a 30-year, fixed-rate mortgage decreased to 6.61%, down from 6.70% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Most of the increase was due to a sharp increase in applications for refinances, which surged 35% from the previous week and were up 93% compared with the same week one year ago.
Applications for purchases also increased sharply – up 9% compared with the previous week and up 24% compared with the same week one year ago.
“Mortgage applications increased by 20 percent to its highest level since September 2024, driven by purchase and refinance applications picking up in a volatile week where economic uncertainty caused rates to drop across the board,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “The 30-year fixed mortgage rate was 6.61 percent, the lowest rate since October 2024.”
“Both homebuyers and refinance borrowers were quick to take advantage of this dip in rates, driving the purchase index 24 percent higher than a year ago to the strongest pace since January 2024,” Kan adds. “Refinance applications rose by 35 percent to the highest level in six months, as borrowers with larger loan sizes tend to be more sensitive to rate changes. The average refinance loan size jumped to its second highest in the survey at $399,600.”
The refinance share of mortgage activity increased to 43.6% of total applications, up from 38.6% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 8.6% of total applications.
Photo: Ben Mullins