Mortgage Rates Remain Surprisingly Calm

Mortgage applications dipped again last week, though the pace of decline slowed considerably. The Mortgage Bankers Association (MBA) reported a 0.8% decrease on a seasonally adjusted basis for the week ending April 3. Refinance activity continued to weaken, with the Refinance Index falling 3% from the previous week and now sitting 4% below year-ago levels. The slowdown reflects a sharp drop in borrower incentive following the recent run-up in rates. Purchase activity showed modest resilience, with the seasonally adjusted Purchase Index rising 1% from the prior week. However, demand remains softer overall, with purchase applications down 7% compared to the same time last year—the first annual decline since early 2025. MBA’s Joel Kan said “higher mortgage rates