Mortgage applications today: Mortgage loans and refinances decline for another week as rates climb higher
Mortgage applications fell for the fourth week in a row – down 0.8% in the week ending April 3, according to the Association of Mortgage Bankers.
The Market Composite Index, a measure of the number of mortgage applications, fell by 0.8%
a seasonally adjusted basis from a week earlier. On an unadjusted basis, the index fell 1% compared to the previous week.
The Refinance Index fell 3% from the previous week and was 4% lower than the same week a year ago. The seasonally adjusted purchasing index rose by 1% compared to a week earlier. The unadjusted Purchase Index rose 1% from the previous week and was 7% lower than the same week a year ago.
Borrowers who may be on the sidelines face rising mortgage interest rates. The average interest rate on a 30-year home loan rose to 6.46% for the week ending April 2, according to Freddie Mac.
That marks the fifth week in a row of rising interest rates. Last week it registered at 6.38%; over the same period in 2025, rates averaged 6.64%.
‘Higher mortgage rates and persistent economic uncertainty put pressure on mortgage applications
again last week. While mortgage rates saw a slight recovery, with 30-year fixed rates falling
6.51%, many potential refinance borrowers have been left out by the sharp increase over the month
last month. The pace of refinancing applications was at the lowest level since December 2025,” the bank said Joel
CanMBA’s vice president and deputy chief economist.
The refinancing share of mortgage activity fell to 44.3% of total applications from 45.3% the week before. The share of mortgage interest deduction in activity increased to 8.6% of the total
applications.
The Federal Housing Administration’s share of total applications fell to 19.3% from 19.5% the week before. The Veterans Affairs share of total loan applications remained unchanged at 16.1% from the previous week. The USDA share of total applications remained unchanged at 0.5% from the previous week.
“Overall purchasing activity has also been negatively impacted by current conditions, with purchase requests down 7% year-over-year, the first annual decline since January 2025,” Kan said.
“However, certain loan types and geographic segments are performing better than others due to lower rates on ARM and FHA loans, as well as growing housing inventory in some local markets. FHA purchase applications increased 5% during the week, supported by the fact that FHA mortgage rates were approximately 30 basis points lower than conventional mortgage rates.”
Contract rates
The average contract rate for 30-year fixed-rate mortgages with conforming loan balances
($832,750 or less) decreased from 6.57% to 6.51%, with points dropping from 0.65 to 0.61 (including the origination fee) for loans with an 80% Loan-to-Value (LTV) ratio. The effective rate decreased compared to last week.
The average contract rate for 30-year fixed-rate mortgages with large loan balances (greater than $832,750) fell from 6.59% to 6.54%, with points dropping from 0.43 to 0.35.
(including the origination fee) for 80% LTV loans. The effective rate decreased compared to last week.
The average contract rate for 30-year fixed-rate mortgages backed by the FHA fell from 6.25% to 6.22%, while points fell from 0.81 to 0.73 (including the origination fee) for 80% LTV loans. The effective rate decreased compared to last week.
The average contract rate for 15-year fixed-rate mortgages increased from 5.89% to 5.90%, while points decreased from 0.75 to 0.74 (including the origination fee) for 80% LTV loans.
The effective rate has increased compared to last week.
The average contract rate for 5/1 ARMs fell from 5.67% to 5.60%, with points increasing from 0.56 to 0.68 (including the origination fee) for 80% LTV loans. The effective rate decreased compared to last week.
Mortgage interest calculated
Mortgage rates are calculated based on several factors in the economy, and the length of your loan also plays a role in the mortgage rate you qualify for.
According to Fannie Mae, 30-year mortgage rates are tied to 10-year Treasury bond rates. While interest rates on ten-year government bonds move, mortgage rates follow suit.
The yield on ten-year government bonds is determined by expectations for shorter-term interest rates in the economy over the life of a bond, plus a term premium.
