Latest data shows strongest weekly pace since early February despite overall slowdown
Mortgage purchase applications picked up momentum last week, posting their strongest weekly pace in almost two months, according to the latest data from the Mortgage Bankers Association (MBA).
While overall mortgage application volume dipped by 2% for the week ending March 21, seasonally adjusted purchase applications rose by 1%, driven largely by an uptick in FHA-backed activity.
“Purchase applications saw the strongest weekly pace in almost two months and were 7% higher than a year ago,” said MBA deputy chief economist Joel Kan. “Last week’s purchase activity was driven primarily by a 6% increase in FHA applications, as the combination of loosening housing inventory and slowly declining mortgage rates have presented this segment of buyers with more opportunities.”
MBA’s unadjusted purchase index also increased 1% from the week prior and came in 7% higher than the same week in 2024, pointing to improving sentiment among homebuyers despite broader economic uncertainties.
Read next: Don't expect homebuying to fall off a cliff despite tariff uncertainty
The average rate for a 30-year fixed mortgage with conforming loan balances ($806,500 or less) declined slightly to 6.71%, down from 6.72% the week before. However, the dip wasn’t enough to lift refinancing demand. The refinance index fell 5%, marking its lowest level in a month, though it remained 63% higher than a year ago.
“VA purchase applications saw a modest increase over the week,” Kan noted, “but overall applications declined, as refinance applications were down 5%.”
Refinance activity made up a smaller share of the overall mix last week, falling to 40.4% of total applications from 42.0% the week before. Adjustable-rate mortgages (ARMs) accounted for 6.3% of applications, down from the previous week.
Government-backed loan applications remained relatively stable. The FHA share of total applications held steady at 16.5%, while the VA share ticked down slightly to 14.5%. USDA loan activity increased to 0.6%, up from 0.4% the week before.
Still, rising delinquency rates are casting a shadow over recent gains in purchase activity. According to Intercontinental Exchange (ICE), the national mortgage delinquency rate increased five basis points to 3.53% in February, a 19-basis-point jump from the same time last year. FHA loans were the primary driver of the increase, accounting for nearly 90% of the 131,000 annual rise in past-due loans, despite comprising less than 15% of active mortgages.
“Markets remained focused on potential trade policy changes, while the Fed held the funds rate at its current level,” Kan added, pointing to broader economic forces that continue to influence borrower behavior.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
