Mortgage Applications Today: Home Loan Applications Drop for Third Straight Week as Rates Continue To Rise

The demand for home loans fell once again as borrowers are faced with rising rates. Mortgage applications decreased 10.4% for the week ending March 27, according to the Mortgage Bankers Association. This marks the third consecutive week of decline.

The Market Composite Index, a measure of mortgage loan application volume, decreased 10.4 on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 10% compared with the previous week. 

 The Refinance Index decreased 17% from the previous week and was 33% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3% from one week earlier. The unadjusted Purchase Index decreased 2% compared with the previous week and was 1% higher than the same week one year ago.

Prospective homebuyers are faced with mortgage interest rates which have been increasing—reaching its highest level in more than six months. The average rate on a 30-year fixed home loan rose 6.38% for the week ending March 26, according to Freddie Mac.

That's up from 6.22% from the week prior, but lower than when it averaged 6.65% during the same time frame in 2025.

"The 30-year mortgage rate, now at 6.57 percent, reached its highest level since last August and is up half a percentage point from just one month ago. Refinance application volumes declined sharply again last week, dropping 17 percent, and are down more than 40 percent compared to last month,” said Mike Fratantoni, MBA’s senior vice president and chief economist. 

The refinance share of mortgage activity decreased to 45.3% of total applications from 49.6% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8% of total applications.

The Federal Housing Administration (FHA) share of total applications decreased to 19.5% from 19.7% the week prior. The Veterans Affairs share of total loan applications increased to 16.1% from 15.9% the week prior. The USDA share of total applications remained unchanged at 0.5%0 from the week prior.

“Seasonally adjusted purchase application volume also declined over the week, but only by 3 percent," Fratantoni said. "The headwinds of higher rates are being offset somewhat by the buyer’s market in many parts of the country – there are more homes for sale than buyers have seen in some time. Moreover, purchase applications for FHA and VA loans continue to hold up better than those for conventional buyers.  However, the shocks of the jump in rates and the increase in overall economic uncertainty are likely having an impact on buyer confidence.”

Contract rates

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 6.57% from 6.43%, with points remaining unchanged at 0.65 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) increased to 6.59% from 6.45%, with points decreasing to 0.43 from 0.56 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.  

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.25% from 6.15%, with points increasing to 0.81 from 0.75 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.89% from 5.83%, with points decreasing to 0.75 from 0.80 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs decreased to 5.67% from 5.75%, with points decreasing to 0.56 from 0.68 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week. 

Mortgage rates calculated

Mortgage rates are calculated based on various factors in the economy, and the length of your loan will also figure into the mortgage rate you qualify for.

The 30-year mortgage rate is tied to the yield of the 10-year Treasury note, 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 for shorter-term interest rates in the economy over the duration of a bond, plus a term premium.