Mortgage applications took a hit this week as the consumers remain on edge due to a wavering economy.
The Market Composite Index (a measure of the volume of mortgage applications) fell 8.5% from one week earlier, according to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association (MBA) for the week ending April 11. This is a sharp reversal from the 20% jump seen in last week’s data, when a downturn in mortgage rates to their lowest point since October 2024 led to a jump in application activity.
The seasonally adjusted Purchase Index fell as well by 5%, and the unadjusted Purchase Index fell by 4%.
MBA SVP and Chief Economist Mike Fratantoni noted that while purchase applications are still up from last year by about 13%, “economic uncertainty and the volatility in rates is likely to make at least some prospective buyers more hesitant to move forward with a purchase.”
The Refinance Index also decreased, falling 12% from last week, but remained 68% higher year-over-year. The refinance share of mortgage activity decreased to 41.3% of total applications from 43.6% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased a full percentage point to 9.6% of total applications, which Fratantoni added was a notable change from the previous week’s data and was “the highest since November 2023.”
“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,” he continued. “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.”
In addition, the FHA share of total applications decreased to 15.8% from 16.3% the week prior. The VA share of total applications decreased to 13.7% from 15.7% the week prior. Lastly, the USDA share of total applications remained unchanged at 0.5% from the week prior.
To view all of this week’s mortgage application data, click here.
