Demand rose even as 30‑year rates moved back above 6%
Mortgage demand edged higher in early March as homebuyers pressed ahead into the spring market, even while bond and rate markets were shaken by conflict in the Middle East and war with Iran.
Applications for home loans increased 3.2% in the week ending March 6, 2026, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Purchase activity rose more sharply than refinances, and the 30‑year conforming rate moved up to 6.19% from 6.09% the prior week.
Seasonally adjusted purchase applications increased 7.8% from the previous week and were 11% higher than the same week a year earlier.
Refinance volume increased just 0.5% but stood 81% above year‑ago levels, reflecting how many borrowers were still locked into older, more expensive loans.
Refinances accounted for 57.8% of total applications, while adjustable‑rate mortgages (ARMs) made up 8.9% of activity.
“Financial markets were volatile last week amid the ongoing turmoil in the Middle East. Mortgage rates increased on net over the week, while refinance volume was roughly flat,” said Mike Fratantoni, MBA senior vice president and chief economist.
“Borrowers in recent weeks were able to get 30‑year conforming rates below 6 percent, but with the current volatility, longer‑term rates have moved up, pushing up the 30‑year fixed rate to 6.19 percent.”
FHA and ARM demand pointed to affordability squeeze
“Purchase activity increased last week, particularly for FHA loans, which moved up more than 11 percent,” Fratantoni said.
“The pace of homebuying continues to track ahead of last year’s pace, with overall purchase volume up 10 percent. More inventory on the market is supporting more transactions.”
The FHA share of applications increased to 17.1%, while the VA share slipped to 16.1%. The average rate on FHA‑backed 30‑year loans rose to 6.02%, and jumbo 30‑year rates climbed to 6.26%.
Volatile rates met tight but improving supply
MBA data arrived as broader housing indicators continue to show constrained but slowly improving supply. The National Association of Realtors’ latest existing‑home sales report showed a 3.8‑month supply of homes for sale in February. That's still below the 5 to 6 months often viewed as a balanced market between buyers and sellers.
With applications now rising into the heart of the spring season, the data suggests a market where experienced originators still have to navigate rate whiplash, a renewed tilt toward FHA and ARM products, and a supply picture that remains too thin to fully meet demand.
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