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Buyers responded with enthusiasm to a dip in mortgage rates last week, but this week’s rate spikes and conflict in Iran could lead to a downturn in mortgage applications in weeks to come.

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Mortgage applications made their strongest showing of the month during the final week in February as buyers sought to capitalize on a dip below 6 percent in mortgage rates.

The number of mortgage applications increased 11 percent from the week prior during the week ending Feb. 27, 2026, according to the Mortgage Bankers Association.

The Market Composite Index, which measures mortgage loan application volume, rose 11 percent week over week on a seasonally adjusted basis, and it increased 12 percent from the week prior on an unadjusted basis.

Meanwhile, the Refinance Index increased 14.3 percent from the week before. It was also 109 percent higher than the same period in 2024.

The unadjusted Purchase Index rose 8.9 percent from the week before, and it increased 10 percent from the same week in 2024.

Joel Kan

“Mortgage applications increased last week, driven by continued strength in refinance activity, as mortgage rates stayed near their lowest level since 2022,” Joel Kan, MBA vice president and deputy chief economist, said in the company’s report.

“Refinance applications increased for the fourth straight week to the strongest pace since 2022, with conventional refinances up 20 percent. The increase in the average loan size for refinances indicates that more borrowers with larger loan sizes are seeking to lower their monthly payments. Purchase applications also moved higher, with the week’s pace almost 10 percent ahead of last year’s pace, as lower rates and growing levels of housing inventory continue to support homebuyer interest.”

At the beginning of last week, 30-year fixed-rate mortgages had dropped below 6 percent, matching their lowest level since 2022.

This week, however, rates made a quick reversal following news over the weekend that the U.S. had launched a strike on Iran, sending the economy tumbling into uncertainty. As of Tuesday, the 30-year fixed-rate mortgage rate sat at about 6.13 percent, according to Mortgage News Daily.

The number of mortgage applications had gradually improved each week throughout the month of February, according to MBA’s weekly reports. However, rate spikes and global uncertainty have a history of spooking buyers, which may result in fewer applications in the weeks to come.

Email Lillian Dickerson

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