Home loan applications increased for the second week in a row, despite steadily rising mortgage rates.
Mortgage applications rose by 1.7% the week ending Nov. 15, the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
“Mortgage rates moved higher for the fourth consecutive week, with the 30-year fixed rate increasing to 6.90 percent, its highest level since July 2024. However, even with the uptick in rates, overall mortgage applications increased,” MBA’s Vice President and Deputy Chief Economist Joel Kan commented on the latest data.
Applications saw their first increase in nearly two months the week ending November 8, though it was only 0.5%.
The MBA’s latest data for the week ending Nov. 15 indicates refinance applications increased 2% from the week prior and 43% from the same week one year ago. The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index decreased 3% compared with the previous week and was 1% lower year-over-year.
“The pickup in purchase applications was driven by conventional and FHA loans, with FHA purchase applications seeing a seven-percent increase,” Kan pointed out. “For-sale inventory has loosened in some markets and some potential buyers have been able to take advantage of increasing supply and lower FHA rates, which were down slightly in comparison to the conforming 30-year fixed rate. Refinance activity rose slightly last week, driven largely by a 10 percent increase in VA applications.”
The refinance share of mortgage activity increased to 41% of total applications from 39.9% the previous week. Meanwhile, the adjustable-rate mortgage (ARM) share of activity fell to 5.9% of total applications; the FHA share increased to 16.6% from 16% the week prior; the VA share rose to 13.6% from 13.3%, and the USDA share fell to 0.4% from 0.5% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 6.90% from 6.86%, with points increasing to 0.70 from 0.60 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) increased to 7.03% from 7%, with points increasing to 0.53 from 0.48 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
