Mortgage applications drop 1.6% as borrower intent shrinks

"The 30-year fixed mortgage rate rose to 6.37%, leading to a 4% decline in refinance applications, while purchase activity increased nearly 2%."

"Purchase applications were more than 20% above last year's pace, indicating potential homebuyers are moving forward this spring."

"The refinance share of mortgage activity decreased to 42.5%, down from 44.2%, while the adjustable-rate mortgage share increased to 8.3%."

"The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased 2 basis points to 6.37%."

Mortgage rates increased to 6.37% for 30-year fixed loans, causing a 4% drop in refinance applications. However, purchase applications rose nearly 2% week-over-week and were over 20% higher than last year. The refinance share of mortgage activity fell to 42.5%, while adjustable-rate mortgages increased to 8.3%. The FHA share decreased to 17.2%, and VA and USDA shares remained unchanged. The interest rate environment is influenced by macroeconomic factors and geopolitical uncertainties, affecting overall mortgage activity.

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