Rates Fall To 6.67%, Driving Mortgage Applications

ByTMN Editor Reading Time: 2 minutes

Mortgage applications increased for a second week as rates sank to 6.67%.

The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — jumped by 11.2%, adding to the week prior’s 20.4% drop.

Adjusted purchase applications were up 7%, while the unadjusted index increased 8% and was 4% higher year-over-year. 

The 30-year fixed rate fell to 6.67% from 6.73%, their sixth straight week of declines and the lowest level since October 2024.

As a result, refinances rose by 16% on the week and 90% on the year. They accounted for 45.6% of applications.

“As we enter the spring homebuying season, the purchase index was more than 4% higher than a year ago, and activity was up across all loan categories. Government purchase applications experienced an 11% increase – helped by the FHA rate dropping to 6.34%,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.

“Additionally, average loan sizes were higher, with the purchase loan amount hitting $460,800, the highest in the survey dating back to 1990.”

Potential buyers are struggling to save for a down payment with home prices at historic highs. The FHA offers low down payment mortgages, making them attractive for qualified homebuyers.

But HUD Secretary Scott Turner has alluded to DOGE and DEI-related staffing cuts in the department. It’s still unknown how many staffers will be affected. Bloomberg reported around 40% of the department’s staff, though HUD officials denied that number.

Still, any staff reductions will impact how many loans will be rolled out, and how quickly.

“I can imagine the cuts potentially leading to delays at all stages… These delays would ultimately lead to higher costs of mortgages,” Ingrid Gould Ellen, a professor of urban policy and planning, and director of housing and urban policy at New York University, told CNBC.

A new report from the Center on Budget and Policy Priorities came to similar conclusions, suggesting any large-scale layoffs will only create “delays and waste.”