US Mortgage Applications Drop 10.9% as Rates Rise

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%.

The volume of mortgage applications in the US rose by 3.2% from the previous week in the first week of March, recording its fourth consecutive period to the second highest level since 2022. The increase took place despite a fresh increase in benchmark mortgage rates, as the outbreak of war in Persian Gulf countries triggered a surge in energy prices and lifted the yield in long-dated Treasury securities. Applications for a mortgage to purchase a new home jumped by 7.8% after having underperformed the total figure for multiple weeks. In the meantime, applications for a contract to refinance a mortgage, which are more sensitive to short-term changes in interest rates, inched higher by 0.5%.

The volume of mortgage applications in the US rose by 11% from the previous week in the final week of February, extending the slight increases from the two previous periods to mark the fourth strongest week for mortgage applications since 2022, according to data compiled by the Mortgage Bankers Association. The increase matched the pullback in benchmark mortgage rates from the previous week, which stuck through the turn of the month as a flight to safety on US financial markets drove yields on long-term US treasury securities to fall sharply. Applications to refinance an existing mortgage, which are more sensitive to short-term changes in interest rates, jumped by 14.3%. In turn, applications for a mortgage to purchase a new home rose by 6.1%.