The rebound followed a volatile stretch in March, when MBA data showed applications dropping more than 10% in a single week
The spring market finally showed a pulse last week as mortgage rates moved lower for the third straight week and buyers rushed back into the pipeline.
Total mortgage application volume rose 7.9% in the week ending April 17, according to the Mortgage Bankers Association (MBA), snapping a string of declines that worried many originators.
Demand turned after a bruising March
The rebound followed a volatile stretch in March, when MBA data showed applications dropping more than 10% in a single week as the 30‑year fixed rate pushed above 6.5%.
By mid‑April, the average contract rate for 30‑year fixed mortgages with conforming balances at or below $832,750 eased to 6.35%. That's down from 6.42% the prior week and roughly 55 basis points below where it stood a year earlier.
“Mortgage rates declined last week as financial markets responded positively to the Middle East ceasefire and the lower trend in oil prices, with the 30‑year fixed rate decreasing to 6.35%,” said Mike Fratantoni, MBA senior vice president and chief economist.
“Refinance application volume increased by 6%, while purchase application volume increased an even stronger 10% and was up 14% compared to last year’s pace. This increase was led by conventional purchase loans up 11% over the week.”
Buyers leaned into a fledgling buyer’s market
Applications for a mortgage to purchase a home rose 10% week over week, leaving purchase demand 14% higher than the same week a year ago.
Refinance activity, still highly rate‑sensitive, climbed 6% on the week and was 52% above its year‑ago level. Those figures marked a sharp turnaround from earlier this month, when refinance volumes fell more than 40% versus the prior month.
“Despite the geopolitical uncertainty, housing demand is being supported by a still resilient job market, and homebuyers are experiencing a buyer’s market in most of the country, given the higher levels of inventory relative to last year,” Fratantoni said.
Broader rate outlook stays cautious
The latest move came against a backdrop of fading inflation fears in energy markets and expectations that long‑term Treasury yields would stay contained, helping keep mortgage rates in the mid‑6% range.
MBA’s own baseline forecast projected 30‑year rates hovering around 6.4% through 2026, even with anticipated Federal Reserve cuts.
While that path implies only modest further relief on borrowing costs, industry leaders argued that even incremental rate declines – combined with better inventory – could gradually unfreeze demand.
If rates remain near or below current levels and supply continues to improve, brokers and lenders are likely to see more weeks like this one – shorter bursts of activity, but enough to keep a fragile recovery alive.
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