US Mortgage applications rise 1.8% — first increase in 5 weeks as rates drop, refinance demand surges while homebuyers stay cautious

Mortgage applications in the US went up by 1.8% for the week ending April 10, 2026 — this is the first increase in 5 weeks. Before this rise, applications had actually fallen by 0.8% in the previous week. The main reason for the increase is that mortgage rates went down, making loans slightly cheaper. The average 30-year fixed mortgage rate dropped to 6.42%, which is the lowest level in about a month, as per Trading Economics. Earlier, this rate was 6.51%, so the drop helped push more people to apply.

Refinancing goes up strongly

Applications for refinancing homes jumped around 5–5.1% in one week, as stated by CNBC. Refinancing is very sensitive to interest rates, so when rates fall, more people rush to refinance. Compared to last year, refinance applications are 15% higher.

Home buying demand still weak

Applications to buy homes actually fell by 1% during the same week. This shows that even though loans are cheaper, people are still not confident to buy homes. Buying demand is also 3% lower compared to the same time last year. This is the second week in a row where home purchase activity is below last year’s level.

Why buyers are still hesitant

Experts say economic uncertainty is making people cautious about buying homes. Many buyers are waiting because they are unsure about the future. Joel Kan said purchase activity is still “subdued” because people are hesitant, as noted by CNBC.

Global factors affecting mortgage rates

Mortgage rates are falling partly due to global tensions, especially the Iran conflict. This conflict is affecting oil and energy prices, which impacts financial markets. Changes in oil prices are influencing bond yields and interest rates, which directly affect mortgage rates. Because of this, mortgage rates have been moving up and down frequently.

Total mortgage demand increased mainly because of refinancing, not home buying. Lower interest rates are helping some activity, but housing demand is still weak overall. The market is currently mixed — good for refinancing, but slow for buying homes, as cited by CNBC.

FAQs

Q1. Why did US mortgage applications increase recently?

Mortgage applications increased mainly because interest rates dropped, which made refinancing cheaper and more attractive for homeowners.

Q2. Why are homebuyers still not applying for mortgages?

Homebuyers are still hesitant due to economic uncertainty, so purchase applications remain low despite lower rates.