Refi demand down 40% in a month as rates hit highest since August

👋 Good morning. Happy April Fools' Day — the prank was the subject line. We got you. Now, back to actual news. Today’s newsletter is 647 words, a 2.5-minute read

1. Refi demand down 40% in a month

The 30-year fixed rate climbed to 6.57% last week — up half a point from just one month ago and the highest since last August. Total mortgage application volume fell another 10.4%, with refi apps down 17% for the week and now more than 40% below last month's levels.

Purchase apps dropped 3% and are nearly flat year-over-year, erasing what had been a promising start to the spring buying season. FHA and VA applications are holding up better than conventional, suggesting first-time and lower-income buyers are still in the market while move-up buyers pull back.

Rates have since dropped sharply to start this week on Iran de-escalation signals, though they remain well above pre-war levels.

2. Vought requests CFPB funding — but only under protest

After courts blocked his attempt to cut off the CFPB's funding stream, acting director Russell Vought has requested $75.8 million from the Federal Reserve to keep the bureau running through the end of June.

He made clear he's complying reluctantly, writing that he believes the agency can operate on a significantly smaller budget and only submitted the number to satisfy the court order.

It's a notable reversal for Vought, who previously said publicly he was working to shut the agency down within months. Two separate courts have now ruled that only Congress has the authority to close the CFPB.

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4. More than half of home listings are sitting unsold for 60+ days

52% of February listings had been on the market for at least 60 days without going under contract — the highest share since 2019 — representing $347 billion in stale inventory, a record for this time of year. The typical home that did sell spent 66 days on market, the slowest February pace in a decade.

The dynamic is simple: sellers are still listing at high prices hoping to negotiate down, but buyers are pulling back due to high rates, economic uncertainty, and the Iran war. Home sales fell 3.1% year over year in February while supply continued to grow.

Florida metros are the worst off — Miami leads with 62.6% of listings stale, followed by San Antonio and Pittsburgh. The Bay Area remains the tightest market, with San Jose at just 19.8%.

5. NEXA developing program to give LOs a cut of servicing income

NEXA Lending is building a program that would allow loan originators to participate in recurring revenue tied to the long-term performance of loans they originate — an income stream that has traditionally stayed with lenders and institutional investors. A phased rollout is targeted for as early as July 2026.

The structure includes three components: a servicing-aligned income mechanism, enhanced data visibility into how originated loans are performing, and a proprietary tech platform to manage it all.

Key details — the legal structure, how revenue sharing works, and how it navigates varying state licensing requirements — haven't been disclosed yet. NEXA says those will emerge closer to launch.

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

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