Mortgage Applications Decline in the Week Ending April 11

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, April 11, the Market Composite Index—a measure of mortgage loan application volume—decreased 8.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 8.0% compared with the previous week.

The Refinance Index decreased 12.0% from the previous week but was 68.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 5.0% from one week earlier. The unadjusted Purchase Index decreased 4.0% compared with the previous week but was 13.0% higher than the same week one year ago.

Commenting on the results of this week’s survey, MBA Senior Vice President and Chief Economist Mike Fratantoni said:

“Mortgage rates moved 20 basis points higher last week, abruptly slowing the pace of mortgage application activity with refinance volume dropping 12% and purchase volume falling 5% for the week. Purchase volume remains almost 13% above last year’s level, but economic uncertainty and the volatility in rates is likely to make at least some prospective buyers more hesitant to move forward with a purchase. One notable change last week was the full percentage point increase in the ARM share. Given the jump in rates, more borrowers are opting for the lower initial rates that come with an ARM, with initial fixed rates closer to 6% in our survey last week. The ARM share at 9.6% was the highest since November 2023, and this reflects the share of units. On a dollar basis, almost a quarter of the application volume last week was for ARMs, as borrowers with larger loans are even more likely to opt for an ARM.”