While refinance activity dipped slightly, a notable rise in purchase applications supported the overall increase.
“The news for the week was the growth in purchase applications, up 2.3% and almost 18% higher than last year’s pace,” Fratantoni said. “Despite the economic uncertainty, the increase in home inventory means there are additional properties to buy, unlike the last two years, and this supply is supporting more transactions.”
The seasonally adjusted Purchase Index rose by 2%, while the unadjusted index also increased by 2% from the prior week and was up 18% compared to the same week in 2024. Government-backed purchase applications were especially strong, jumping nearly 5% for the week and 40% year over year.
Optimal Blue’s April Market Advantage report recorded a 7.5% increase in purchase locks, which helped drive a 3.2% monthly rise in total lock volume.
“April confirms the season is underway with a solid increase in purchase locks,” said Brennan O’Connell, director of data solutions at Optimal Blue. “We also saw a shift toward FHA loans, often used by first-time or credit-challenged buyers, and away from non-conforming products, possibly reflecting investor caution in response to broader economic uncertainty.”