United States mortgage applications for home buyers increased by almost 6% last week to their highest pace since September, despite growth in mortgage rates.
Total mortgage loan applications were up 0.6% for the week to 7 November, according to the Mortgage Bankers Association (MBA). The average 30-year fixed mortgage rate was 6.34%, rising from 6.31% the previous week.
“Purchase applications for conventional, FHA [Federal Housing Administration], and VA [Veterans Affairs] loans increased, as potential homebuyers continue to shop around, particularly in markets where inventory has increased and sales price growth has slowed. Based on the unadjusted purchase index for the week, this was the strongest start to November since 2022,” said MBA vice president and deputy chief economist Joel Kan.
Mortgage application volumes for home purchases increased 31% year-over-year.
While MBA’s mortgage refinance index fell by 3% from the prior week, it was 137% higher than one year ago.
“Higher mortgage rates did quell some refinance activity, as conventional and VA refinance applications declined over the week, and the average loan size for refinances dropped to its lowest level in over a month,” said Kan.
Refinances represented 55.6% of total mortgage applications during the week, declining from 57.0%.
The 30-year rate for mortgages with loan balances above US$806,500 rose to 6.46%, from 6.43%.
Mortgage rates have largely fallen since July in anticipation of the Federal Reserve’s September and October interest rate cuts. Average 30-year rates reached their lowest point in 2025 last month.
An 80% majority of economists expect the Fed will cut interest rates by 0.25% in December, according to a Reuters poll today.
The U.S. government is also considering backing 50-year mortgage plans. Federal Housing Finance Agency director Bill Pulte said the agency, which oversees Fannie Mae and Freddie Mac, was “working on” 50-year plans after Truth Social posts from U.S. President Donald Trump supporting the idea.
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