Mortgage applications

Royal Bank of Canada executives said they plan to start originating more mortgages in the United States, and they indicated that they may ditch the City National Bank brand.

Government-backed lending drove an increase in purchase mortgages for a second straight week, even as interest rates failed to drive refinance activity.

The average size of purchase applications fell below the $400,000 mark, reflecting first-time home buyer interest, the Mortgage Bankers Association said.

Refinance activity was up 16% from the end of February while purchase applications rose mildly, on the strength of fading rates amid larger economic woes.

The average 30-year fixed-rate mortgage fell to its lowest point so far in 2025, driving refinance activity 83% higher than the same time a year ago.

January's median payment also grew at its fastest pace since October as volatile interest rates hit homebuyers' wallets, the Mortgage Bankers Association said.

Purchase volume was flat last week and up just 3% compared to the same time a year ago when the market faced similar rates in the high 6% range.

Overall home loan application activity fell 6.6% last week, according to the Mortgage Bankers Association, with volume resembling the frigid start to the year.

At the same time builders and lenders report contracting credit on offer, sentiment in the residential construction industry improved in the latter half of 2024.

The latest refinance surge helped lift total application activity up for a second straight week, even as purchases fell, the Mortgage Bankers Association said.