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2h ago

Mortgage Rate Spike to 6.57% Drives Steep Drop in Applications

Oil-driven gains in Treasury yields sent borrowing costs higher.

A House For Sale sign is displayed in front of a home in Evanston, Ill.,Wednesday, March 25, 2026. (AP Photo/Nam Y. Huh)
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Average mortgage rates rose for the fifth-straight week, just as springtime buying season kicks off, according to Freddie Mac.
A drone view shows a construction worker performing tasks on a multi-home residential project by Shea Homes in Encinitas, California, U.S. July 21, 2025. REUTERS/Mike Blake/File Photo

Overview

  • The Mortgage Bankers Association’s weekly survey, released Wednesday, showed total applications down 10.4% for the week ending March 27.
  • The average 30-year fixed contract rate rose 14 basis points to 6.57%, the highest since August.
  • Refinance applications fell 17% week over week and more than 40% from a month earlier, while purchase applications slipped about 3%.
  • Rising energy prices linked to the U.S.–Israel war on Iran lifted the 10-year Treasury yield to about 4.32% for the month, and higher yields pushed mortgage pricing up.
  • Measures diverged across sources, with Zillow showing a 6.25% average on April 1 and Mortgage News Daily noting an early-week pullback, while MBA data also showed the refi share down to 45.3%, ARMs at 8%, and FHA/VA purchases holding up better than conventional.