MBA reports strongest application volume since September, with purchase loans and refis both climbing
Mortgage activity surged last week after three consecutive weeks of decline, reaching its highest level since September 2024, as lower interest rates encouraged both homebuyers and refinance borrowers to return to the market.
The Mortgage Bankers Association (MBA) reported that the total application volume increased by 20% for the week ending April 4.
The increase was “driven by purchase and refinance applications picking up in a volatile week where economic uncertainty caused rates to drop across the board,” said MBA deputy chief economist Joel Kan, noting that the 30-year fixed mortgage rate averaged 6.61%, the lowest rate since October 2024.
Kan added that “both homebuyers and refinance borrowers were quick to take advantage of this dip in rates, driving the purchase index 24% higher than a year ago to the strongest pace since January 2024.”
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The MBA’s Refinance Index rose 35% from the prior week and was 93% higher than the same week a year ago. The refinance share of total mortgage activity jumped to 43.6%, up from 38.6% the week before.
“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,” Kan said. “The average refinance loan size jumped to its second highest in the survey at $399,600.”
The seasonally adjusted purchase index rose 9%, while the unadjusted index increased 10% from the previous week and was 24% higher than the same week one year ago.
Data from Mortgage Capital Trading also reflected the uptick in borrower activity. Mortgage rate locks increased by 17.1% month-over-month in March. Purchase mortgage locks rose 14.2%, while rate/term refinance locks surged 54.4%.
The adjustable-rate mortgage (ARM) share of applications rose to 8.6%. FHA applications increased to 16.3% of the total, up from 15.8%. VA loans saw their share rise to 15.7%, compared with 14.4% the previous week. The USDA share held steady at 0.5%.
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