Mortgage refinance demand plunges 19% after interest rates shoot higher

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1. Mortgage refinance demand plunges 19% after interest rates shoot higher

The 30-year fixed rate jumped to 6.30% last week — up from 6.19% the week prior — as the Iran conflict pushed oil prices higher and rattled Treasury markets. Refinance applications dropped 19% week-over-week, with conventional refis down a steep 27%.

Purchase apps managed a 1% gain and are still 12% above last year's levels, offering a cautiously optimistic sign heading into the spring buying season.

Rates have edged back down slightly to start this week, though all eyes are on today's Fed meeting — where no rate cut is expected, but Powell's commentary could still move bond markets.

Related: The Fed isn't doing anything to mortgage rates on Wednesday.

2. Judge rejects bid to cut CFPB funding

A federal judge ruled that the CFPB must continue drawing its funding from the Federal Reserve, rejecting acting director Russell Vought's legal argument that the agency couldn't get money unless the Fed was profitable.

Vought — who said publicly he was working to "close down the agency" — had used that interpretation to stop requesting Fed funds and instead ask Congress for money directly, which would have required a new spending bill. The judge called the move "arbitrary, capricious and in violation of law."

The ruling came after three nonprofits that rely on CFPB lending data sued, arguing the funding cutoff would effectively shut the agency down and cut off data they depend on to track fair lending practices.

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3. More Nuggets

🎥 Florida man uses ChatGPT to sell his home without involving a real estate agent. (NBC)

💰 How much space 400k buys in largest us cities. (PropertyShark)

🗞️ Freedom Mortgage parent strikes deal for Seneca to grow MSR platform. (HousingWire)

📈 NAR pending home sales report shows 1.8% increase in February. (NAR)

4. Zillow brings back Coming Soon — now called Zillow Preview

Zillow announced a new pre-market listing product that lets brokerages share listings publicly on Zillow and Trulia before they hit the MLS. 

Launch partners include Keller Williams, RE/MAX, HomeServices of America, Side, and United Real Estate. Notably absent: eXp, which was Zillow's loudest ally during the ZLAS rollout.

The catch — Zillow Preview listings are entered directly into Zillow before going into the MLS, meaning Zillow now has its own add/edit system outside the MLS. Participating listing agents get priority placement in search results, real-time listing insights, and a potential share of Zillow's Flex revenue.

5. Homebuilder sentiment ticks up, but conditions still grim

The NAHB Housing Market Index rose one point to 38 in March — still below the 50 break-even mark for the 23rd straight month.

Builders got a brief boost from lower rates early in the year, but mortgage rates have since reversed course as the U.S.-Israel conflict with Iran pushed oil prices higher and stoked inflation fears.

Tariffs are squeezing costs on materials and appliances, while immigration enforcement at construction sites is thinning the labor pool. Nearly two-thirds of builders are still offering sales incentives to move homes, and 37% are cutting prices — average discount holding at 6%.

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A MESSAGE FROM CHRIS JOHNSTONE

The Ultimate AI Guide for Loan Officers

☀️ You’re all caught up. See you on Friday!

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