Mortgage Applications Today: Mortgage Demand Hits 4-Week High as Homebuyers Defy Financial Market Volatility

The demand for home loans increased 3.2% from the prior week, for the week ending March 6, according to the Mortgage Bankers Association. This is the fourth straight week mortgage applications have increased.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased 4.1% compared with the previous week. 

The Refinance Index increased 0.5% from the previous week and was 81% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 7.8% from one week earlier. The unadjusted Purchase Index increased 9.3% compared with the previous week and was 11% higher than the same week one year ago.

The four-week home loan streak comes as mortgage interest rates rose to 6% after dipping to 5.98% the prior week, the lowest level since September 2022. The average rate on a 30-year fixed home loan is 6% for the week ending March 5, according to Freddie Mac. Rates average 6.63% during the same period in 2025.

"Financial markets were volatile last week amid the ongoing turmoil in the Middle East. Mortgage rates increased on net over the week, while refinance volume was roughly flat," said Mike Fratantoni, MBA’s senior vice president and chief economist. "Borrowers in recent weeks were able to get 30-year conforming rates below 6%, but with the current volatility, longer-term rates have moved up, pushing up the 30-year fixed rate to 6.19%.

"Purchase activity increased last week, particularly for FHA loans, which moved up more than 11%. The pace of homebuying continues to track ahead of last year’s pace, with overall purchase volume up 10%. More inventory on the market is supporting more transactions."

The refinance share of mortgage activity decreased to 57.8% of total applications from 59.8% the previous week. The adjustable-rate mortgage share of activity increased to 8.9% of total applications.

The Federal Housing Administration share of total applications increased to 17.1% from 15.8% the prior week. Veterans Affairs loans' share of total applications decreased to 16.1% from 17.1% the prior week. The USDA share of total applications remained unchanged at 0.4%.

Contract rates

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 6.19% from 6.09%, with points increasing to 0.58 from 0.52 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) increased to 6.26% from 6.16%, with points decreasing to 0.3 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.  

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.02% from 5.97%, with points increasing to 0.70 from 0.62 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.54% from 5.49%, with points increasing to 0.68 from 0.60 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs decreased to 5.26% from 5.32%, with points increasing to 0.64 from 0.51 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week. 

Mortgage rates calculated

Mortgage rates are calculated based on various factors in the economy, and the length of your loan will also figure into the mortgage rate you qualify for.

The 30-year mortgage rate is tied to the yield of the 10-year Treasury note, according to Fannie Mae. As the yield on the 10-year Treasury note moves, mortgage rates follow.

The yield on the 10-year Treasury note is determined by expectations for shorter-term interest rates in the economy over the duration of a bond, plus a term premium.