Mortgage activity in the United States showed moderate growth in early March, according to the latest mortgage applications weekly survey released by the Mortgage Bankers Association (MBA).
The report shows that total mortgage application volume increased by 3.2% compared with the previous week for the period ending March 6. The data reflects steady interest from homebuyers even as financial markets experienced volatility.
The Market Composite Index, which tracks overall mortgage application activity, rose on both adjusted and unadjusted bases. On a seasonally adjusted basis the index increased 3.2% week over week, while the unadjusted figure rose 4.1%.
The rise suggests that buyers continue to explore home purchases despite uncertainty in global markets and slight increases in borrowing costs.
Market Volatility Influences Mortgage Rates
Financial markets experienced fluctuations during the week, largely due to geopolitical developments and uncertainty surrounding the global economy.
These conditions contributed to rising long-term interest rates, which in turn pushed mortgage rates slightly higher.
According to MBA data, the average 30-year fixed mortgage rate increased to 6.19%, compared with 6.09% the previous week.
In recent weeks, some borrowers were able to secure mortgage rates below 6%, but changing market conditions caused longer-term rates to move upward again.
Even with this increase, mortgage rates remain lower than they were at the same time last year, which continues to support housing demand.
Home Purchase Applications Show Strong Growth
The biggest gain in mortgage activity came from home purchase applications.
The seasonally adjusted Purchase Index increased 7.8% from the previous week, showing stronger demand from buyers entering the housing market.
On an unadjusted basis, the purchase index increased 9.3% week over week and was 11% higher compared with the same week one year earlier.
This indicates that homebuying activity continues to run ahead of last year’s pace.
One factor supporting this growth is the gradual increase in housing inventory. As more homes become available for sale, buyers have additional options, which can lead to more completed transactions.
FHA Loans Driving Purchase Activity
A significant portion of the increase in purchase activity came from Federal Housing Administration (FHA) loans, which are often used by first-time buyers.
FHA loan applications rose more than 11% during the week, highlighting continued interest from buyers who may benefit from lower down payment requirements and flexible lending guidelines.
According to the MBA report, the FHA share of total mortgage applications increased to 17.1%, up from 15.8% the previous week.
This trend suggests that many borrowers entering the housing market are relying on government-backed loan programs.
Refinance Activity Remains Stable
While purchase demand increased, refinance activity remained mostly stable.
The Refinance Index rose slightly by 0.5% from the previous week, indicating limited change in refinancing demand.
However, refinance activity is still significantly higher than last year, with applications 81% higher than the same week in 2025.
Even though mortgage rates have moved higher recently, they are still below some of the levels seen over the past few years, encouraging certain homeowners to refinance existing loans.
The refinance share of total mortgage activity declined slightly to 57.8%, compared with 59.8% the previous week.
Mortgage Application Breakdown by Loan Type
The MBA survey also provides insight into the share of different loan types in the mortgage market.
For the week ending March 6:
- FHA loan share: increased to 17.1%
- VA loan share: declined to 16.1% from 17.1%
- USDA loan share: remained unchanged at 0.4%
The adjustable-rate mortgage (ARM) share increased to 8.9% of total applications, suggesting some borrowers are exploring alternative loan structures as interest rates fluctuate.
Interest Rates for Different Mortgage Types
The weekly survey also reported changes in average mortgage rates across several loan categories.
Conforming Loans
The average contract interest rate for 30-year fixed mortgages with conforming loan balances ($832,750 or less) increased to 6.19%, with points rising to 0.58 for loans with an 80% loan-to-value ratio.
Jumbo Loans
For 30-year fixed jumbo loans, the average rate increased to 6.26%, compared with 6.16% the previous week.
FHA Loans
The average interest rate for 30-year FHA-backed mortgages rose to 6.02%, up from 5.97% the previous week.
15-Year Mortgages
The 15-year fixed mortgage rate increased to 5.54%, compared with 5.49% previously.
Adjustable-Rate Mortgages
The 5/1 adjustable-rate mortgage rate declined slightly to 5.26%, down from 5.32% the previous week.
These rate movements reflect changes in financial markets and the bond yields that influence mortgage pricing.
Inventory Growth Supporting Housing Activity
Housing supply remains one of the key factors affecting mortgage activity.
As more homes become available for sale, potential buyers have greater opportunities to enter the market. This increase in supply has helped support purchase applications in recent months.
Although inventory levels are still lower than historical averages, gradual improvements are helping increase transaction activity.
Outlook for Mortgage Demand
Mortgage demand is likely to remain sensitive to changes in interest rates, economic conditions, and housing supply throughout 2026.
If mortgage rates stabilize or decline slightly, homebuying activity could continue to grow during the upcoming spring housing season.
However, ongoing economic uncertainty and global market volatility may continue to influence borrowing costs.
For now, the latest mortgage applications weekly survey suggests that buyer demand remains active, supported by improving inventory and relatively stable mortgage rates. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
