Mortgage Applications Decrease in Latest MBA Weekly Survey
Despite recent fluctuations, the mortgage market continues to show resilience. As of the week ending April 11, 2025, purchase applications were nearly 13% higher than the same period last year, indicating sustained demand in the housing sector. This growth suggests that, despite economic uncertainties, many prospective buyers remain engaged in the market. Additionally, the share of adjustable-rate mortgages (ARMs) rose to 9.6%, the highest since November 2023, reflecting borrowers’ adaptability in seeking favorable financing options amid changing interest rates.
However, the market faced challenges as mortgage applications decreased by 8.5% from the previous week. This decline was influenced by a 20 basis point increase in the average 30-year fixed mortgage rate, which reached 6.81%, the highest level in two months. Consequently, refinance applications dropped by 12%, and purchase applications fell by 5%. The rise in interest rates has made some borrowers more cautious, impacting overall application volumes.
The recent uptick in mortgage rates is partly attributed to broader economic factors, including increased bond yields driven by investor reactions to ongoing trade tensions. As borrowing costs rise, some potential homebuyers may delay their purchasing decisions, awaiting more favorable conditions. Nevertheless, the continued year-over-year growth in purchase applications highlights the underlying strength and resilience of the housing market, even amidst economic headwinds.
