The residential mortgage market experienced a healthy boost in activity in March, with total lock volume increasing by 9.38% month over month as prospective homebuyers drove a significant surge in purchase applications.

That’s according to data released this week by Mortgage Capital Trading (MCT), which found an increase in total rate lock volume during the month of March.

This overall growth was mostly driven by a 22.86% spike in purchase lock volume, signaling strong seasonal buyer demand even as financial conditions tightened. Borrowers tapping into their home equity also contributed to the monthly gains, with cash-out refinances edging up 5.01%.

However, the impact of rising rates remains evident in other segments of the mortgage market. While purchase activity drove positive momentum, rate-sensitive borrowers pulled back from the closing table. Month-over-month rate-and-term refinances saw a sharp decline of 18.65%.

Andrew Rhodes, head of trading at MCT, highlighted the impressive strength of the purchase market despite high market volatility and a challenging interest rate environment.

“Considering the volatility we saw in March, I would have expected the overall index to come in below baseline,” he remarked in the report. “The fact that it held up speaks to the strength of the purchase market heading into spring.”

At a broad, long-term level, the market still shows substantial growth compared to the same period last year. Year-over-year total lock volume for the 12 months ending March 31 increased by 19.37%. Meanwhile, purchase volume saw a more modest 2.34% annual increase.

Rate-and-term refinances are up a staggering 152.37% compared to last year’s depressed levels, and cash-out refinances have risen by 27.47% over that period.