Mortgage application volumes in the U.S. surged by 20% during the first week of April, more than offsetting the three consecutive declines in the preceding weeks, according to data from the Mortgage Bankers Association.
US mortgage applications rise by 20%
This increase came as benchmark mortgage rates dropped by 9 basis points, aligning with the decline in long-term Treasury yields and mortgage-backed securities (MBS). The drop in rates was largely driven by growing concerns over the U.S. trade war with major trading partners, which prompted a flight to fixed income assets during the period. Refinancing applications, which are more sensitive to short-term interest rate changes, saw a significant 35% rise. Meanwhile, applications for home purchase loans increased by 9%.
Rates fall to October-lows
In terms of mortgage rates, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances (up to $766,550) fell to 6.61% in the week ending April 4, 2025, marking the lowest level since mid-October, down from 6.7% the previous week. This compares to a rate of 7.01% during the same week last year. The average rate for 30-year fixed-rate mortgages with jumbo loan balances (over $806,500) decreased to 6.65% from 6.76%, while the average rate for 30-year fixed-rate mortgages backed by the FHA fell slightly to 6.33% from 6.37%.
