US mortgage applications fell 0.8% in the week ending April 3, extending the cumulative 28.5% decline recorded over the prior three weeks, according to data from the Mortgage Bankers Association. The latest pullback came despite some relief in benchmark mortgage rates, which retreated from last week’s seven-month high.
Longer-term Treasury yields also moved down from recent peaks as markets focused more on growth risks within the broader stagflation debate, tempering expectations that the Federal Reserve might resume rate hikes this year to counter energy-driven price pressures. Even so, household credit sentiment remained subdued amid elevated uncertainty.
Applications to refinance existing mortgages, which are typically more responsive to short-term rate moves, fell 3%. By contrast, applications for loans to purchase a home edged up 1% on the week but were still 7% lower than a year earlier, marking the first annual decline since January 2025.
