US Mortgage Applications Hold Pullback

Mortgage applications in the US sank by 10.4% from the previous week on the period ending March 27th, extending the 10.5% drop in the earlier period, according to data compiled by the Mortgage Bankers Association. It was the third consecutive slump above the 10% threshold as benchmark mortgage rates surged 48bps since the start of the month. Borrowing costs rose as the war in the Middle East lifted the inflation outlook that supported Treasury yields across the curve, in addition to making the FOMC issue hawkish economic projections. Applications for a contract to refinance a mortgage, which are more sensitive to short-term changes in interest rates, sank by 17% to notch a 40% slide in the month. In turn, applications for a mortgage to buy a home fell 3%.

Mortgage applications sank by 10.5% from the previous week on the period ending March 20th, extending the 10.9% decline from the previous week, according to data compiled by the Mortgage Bankers Association. The slump was in line with the increase in benchmark mortgage rates, which that on a 30-year fixed mortgage reaching a five-month high of 6.43%. Borrowing costs tracked the surge in long-dated Treasury yields after the outbreak of war in the Persian Gulf suspended energy exports and drove Federal Reserve Policymakers to trim their outlook of rate cuts this year. Applications for a contract to refinance a mortgage, which are more sensitive to short-term changes in interest rates, sank by 15%. In turn, applications for a mortgage to buy a home fell 5%.

US mortgage applications dropped 10.9% in the week ending March 13, 2026, marking the sharpest decline since September 2025, as borrowing costs climbed to their highest level since late last year and dampened refinancing activity. The average rate on 30 year fixed mortgages with conforming loan balances up to $832,750 rose by 11 basis points to 6.30%. Rising Treasury yields, partly driven by elevated oil prices and inflation risks linked to the Middle East conflict, pushed mortgage rates higher across the board, according to MBA economist Joel Kan. Refinancing applications fell sharply by 18.5%, while applications for home purchases edged up 0.9%.