Mortgage Applications Today: Home Loan Demand Drops 10.5% in Second Straight Weekly Drop as Rates Rise
Home loan applications fell for the second week in a row as rates rose again. Home loan applications fell 10.5% in the week ending March 20, according to the Mortgage Bankers Association.
The Market Composite Index, a measure of home loan application volume, fell 10.5% on a seasonally adjusted basis from one week earlier. On a constant basis, the Index is down 10% compared to the previous week.
The Refinance Index was down 15% from last week and was 52% higher than the same week one year ago. The periodically adjusted Purchase Index was down 5% from one week earlier. The unadjusted Purchase Index fell 5% from the previous week and was 5% higher than the same week one year ago.
Mortgage applications have been reduced again as mortgage interest rates rise again. The average 30-year mortgage rate rose to 6.22% in the week ending March 19, according to Freddie Mac. Last week, rates reached 6.11%.
The rate increase is still lower than what borrowers faced during the same period in 2025—when rates hit 6.67%.
“The threat of prolonged high oil prices continued to keep Treasury yields high, and mortgage rates ended last week higher. The 30-year fixed rate rose to 6.43 percent, more than 30 basis points above the end of February and the highest level since October 2025,” it said. Joel KanMBA vice president and deputy chief economist.
The share of mortgage refinancing fell to 49.6% of total applications from 52.3% last week. The share of adjustable rate mortgages (ARM) for work increased to 8.1% of total applications.
The Federal Housing Administration’s (FHA) share of total applications rose to 19.7% from 19.4% last week. Veterans Affairs’ share of loan applications fell to 15.9% from 16.7% last week. The USDA’s share of total claims rose to 0.5% from 0.4% last week.
“Given this period of increased mortgage rates and reduced refinance grants, refinance applications are down 15 percent as applications across all types of loans are down,” Kan said. “Applications to buy also fell last week, as higher mortgage rates, coupled with rising affordability issues and economic uncertainty, put off potential home buyers.”
Contract prices
The average interest rate for a 30-year fixed-rate mortgage with jumbo loan balances (over $832,750) increased to 6.45% from 6.39%, with a percentage point increase to 0.56 from 0.34 (including down payment) for 80% LTV loans. The active rate has increased since last week.
The average interest rate for a 30-year fixed-rate mortgage with jumbo loan balances (over $832,750) increased to 6.45% from 6.39%, with a percentage point increase to 0.56 from 0.34 (including down payment) for 80% LTV loans. The active rate has increased since last week.
The average interest rate for a 30-year fixed-rate mortgage backed by FHA increased to 6.15% from 6.08%, points increased to 0.75 from 0.70 (including down payment) for 80% LTV loans. The active rate has increased since last week.
The average interest rate for a 15-year fixed-rate mortgage increased to 5.83% from 5.66%, points increased to 0.80 from 0.73 (including down payment) for an 80% LTV loan. The active rate has increased since last week.
The average contract interest rate for 5/1 ARMs increased to 5.75% from 5.65%, with points increasing to 0.68 from 0.67 (including down payment) for 80% LTV loans. The active rate has increased since last week.
Mortgage rates are calculated
Loan rates are calculated based on various factors in the economy, and the length of your loan will also factor into the loan amount you qualify for.
The average 30-year mortgage is tied to the 10-year Treasury note yield, 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 of short-term interest rates in the economy over the bond’s term, as well as short-term interest rates.
