Mortgage applications jump 8.5% as Russia’s war pressures rates Borrowers’ demand for mortgages increased across the board, for purchases and refis

Didier Malagies • March 9, 2022


Mortgage applications jumped 8.5% for the week ending March 4, as mortgage rates dropped for the first time in three months as a result of Russia’s war in Ukraine, the Mortgage Bankers Association (MBA) reported on Wednesday.


Borrowers’ demand for mortgages increased across the board. The MBA‘s seasonally adjusted refi index rose 8.5% from the previous week, with a larger gain in government refinances. Meanwhile, the purchase index was up 8.6% in the same period.


Compared to the same week one year ago, mortgage apps overall dropped 35.8%, with a sharp decline in refi (-49.9%) compared to purchase (-7.4%). The survey, conducted weekly since 1990, covers over 75% of all U.S. retail residential mortgage applications.

According to Joel Kan, MBA’s associate vice president of economic and industry forecasting, the “war in Ukraine spurred an investor flight to quality, which pushed U.S. Treasury yields lower.” Consequently, mortgage rates declined for the first time in 12 weeks, he said. 


The trade group estimates that the average contract 30-year fixed-rate mortgage for conforming loans ($647,200 or less) decreased to 4.09% from 4.15% the week prior. For jumbo mortgage loans (greater than $647,200), rates dropped to 3.79% from 3.88% the week prior.


The survey showed that the refi share of mortgage activity decreased to 49.5% of total applications last week, from 49.9% the previous week. VA apps rose to 10.4% from 10.2% in the same period.


How should the current market impact lenders’ tech adoption?

HousingWire recently sat down with Polly CEO Adam Carmel to discuss how lenders can break old habits and redefine the mortgage process through innovation and modern, advanced technology.


Presented by: Polly

The FHA share of total applications increased to 8.7% from 8.6% the prior week. Meanwhile, the adjustable-rate mortgage share of activity rose from 5.3% to 5.2%. The USDA went from 0.4% to 0.5%.

Regarding purchase applications, Kan said prospective buyers acted on lower rates and the early start of the spring buying season. He added: “The average loan size remained close to record highs, with higher-balance loan applications continuing to dominate growth.”


Experts told HousingWire that the turmoil could lower mortgage rates at least in the short-term, because investors often flee to safer options during periods of conflicts, such as U.S. Treasury notes, bonds and mortgage-backed securities.


On Thursday, Freddie Mac PMMS Mortgage Survey showed its rates at 3.76% for the week ending March 3, down from 3.89% in the previous week. Buyers on average bought 0.8 mortgage points.



“Looking ahead, the potential for higher inflation amidst disruptions in oil and other commodity flows will likely lead to a period of volatility in rates as these effects work against each other,” Kan said in a statement.



Start Your Loan with DDA today
Your local Mortgage Broker

Mortgage Broker Largo
See our Reviews

Looking for more details? Listen to our extended podcast! 

Check out our other helpful videos to learn more about credit and residential mortgages.

Wade Pfau: how market volatility could renew reverse mortgage discussion

By Didier Malagies • April 15, 2025
Wade Pfau, a leading voice in retirement income planning, has long advocated for the strategic use of reverse mortgages —and current market volatility could reignite interest in this often misunderstood tool. 🔁 Why Market Volatility Renews Reverse Mortgage Talks In times of market downturn, retirees face sequence of returns risk , meaning early losses can severely impact the longevity of their portfolio. Pfau suggests that reverse mortgages , particularly Home Equity Conversion Mortgages (HECMs) , can act as a buffer asset to avoid selling investments at a loss. Here's how: During market dips , retirees can pull funds from a reverse mortgage line of credit instead of their investment accounts. This gives their portfolios time to recover before resuming withdrawals. Result : More sustainable income and potentially greater long-term financial security. 🧠 Shift in Strategy: Not Just a Last Resort Pfau argues that reverse mortgages should be considered early in retirement planning , not just as a last-ditch effort: Opening a HECM line of credit early can grow over time due to the compounding credit line. Provides flexibility and tax-efficient access to funds. Helps retirees coordinate income sources between portfolio withdrawals, Social Security, and home equity. 👓 Changing Advisor Perspectives Financial advisors—previously skeptical—are beginning to see reverse mortgages in a new light: Volatile markets have prompted a more open-minded view among planners. More are incorporating reverse mortgages into holistic retirement income strategies . Bottom line : Market volatility doesn’t just threaten retirement—it also opens the door to rethinking traditional strategies . As Pfau puts it, home equity is too significant a resource to overlook, and when used wisely, reverse mortgages can enhance retirement resilience

Questions frequently asked about on job history and funds to close when getting a mortgage

By Didier Malagies • April 14, 2025
Are you a salaried employee, hourly, self-employed, or a contractor? Do you receive bonuses, commissions, or overtime? How consistent is that income? Can you provide recent pay stubs, W-2s, or tax returns? Self-Employment (if applicable): How long have you been self-employed? Can you provide two years of business tax returns and profit/loss statements? 🔹 Funds to Close Questions Lenders want to confirm you have enough money to cover the down payment, closing costs, and reserves. Questions may include: Source of Funds: How much money do you have saved for the down payment and closing costs? Where are these funds coming from (savings, checking, retirement account, gift, etc.)? Are you receiving any gift funds? If so, from whom? Asset Documentation: Can you provide bank statements from the past 2–3 months? Are there any large or unusual deposits? Can you explain them? Reserves: Do you have additional savings left after closing (reserves)? Can you show evidence of other assets (stocks, bonds, retirement)? tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329

What are the benefits of having a Reverse Mortgage

By Didier Malagies • April 10, 2025
Yes, the reverse mortgage market is projected to experience growth in 2025. Analyses indicate that the market size will increase from $1.79 billion in 2024 to $1.92 billion in 2025, reflecting a compound annual growth rate ( A reverse mortgage can be a useful financial tool for certain homeowners, especially older adults looking to access home equity without selling their home. Here are the key benefits of a reverse mortgage: 🏡 1. Access to Home Equity Without Selling You can tap into your home's equity and receive funds as a lump sum , monthly payments , or a line of credit , without having to sell your home or move out. 👴 2. No Monthly Mortgage Payments Unlike a traditional mortgage, you don’t make monthly payments . Instead, the loan is repaid when you sell the home, move out permanently, or pass away. 💵 3. Flexible Payout Options You can choose how to receive the funds: Lump sum Monthly payments (tenure or term) Line of credit Or a combination This flexibility helps match your financial needs. ✅ 4. Stays in Your Name You retain ownership of your home, and as long as you meet the loan requirements (like maintaining the home and paying property taxes/insurance), you can continue to live there. 🛡️ 5. Non-Recourse Loan You (or your heirs) will never owe more than the home is worth . If the home’s value drops below the loan balance, the FHA insurance (if it's a HECM—Home Equity Conversion Mortgage) covers the difference. 👨‍👩‍👧‍👦 6. Heirs Have Options When you pass away, your heirs can: Repay the loan and keep the home Sell the home and keep any remaining equity Walk away if the loan balance exceeds the home’s value  💰 7. Supplement Retirement Income Reverse mortgages can provide a source of income during retirement, helping cover expenses, delay Social Security, or preserve investments. Would you like a quick rundown of the downsides too, just so you have the full picture?
Show More