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Mortgage refinance demand drops 18%
Mortgage rates rose to the highest level in nine months, hitting refinance demand hardest. Homebuyers also pulled back but were still more active than last year.
"There were large declines in applications across loan types – conventional refinances were down 14 percent, along with an 18 percent decrease for FHA applications and a 34 percent decrease for VA applications. Overall, refinance applications accounted for 38 percent of applications, the lowest share since June 2025," said Joel Kan, vice president and deputy chief economist at the MBA, in a release.
Applications for a mortgage to purchase a home fell 0.4% for the week and were just 5% higher than the same week one year ago.
"The average loan size for a purchase application reached another survey high at $473,600, as borrowers with smaller loan sizes were less active given the higher rate environment and its negative impact on their purchasing power," Kan added.
Mortgage rates moved very slightly lower to start this week, according to a separate survey from Mortgage News Daily. Investors saw a potential de-escalation in the war with Iran, which caused bond yields to drop and mortgage rates to follow.
Source Reference
Originally published by CNBC
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