Purchase Demand Hits Highest Point in Nearly Three Years as Buyers Return to the Market

Mortgage applications inched higher last week, showing improving momentum in the housing market even as interest rates saw a slight rise. The Mortgage Bankers Association’s latest Weekly Applications Survey shows total application volume up 0.6% on a seasonally adjusted basis for the week ending November 7. On an unadjusted basis, overall activity dipped 1%, but the underlying trends point to steady buyer interest.

Refinancing activity slowed for the week, dropping 3%, yet refi demand still sits 147% higher than the same period a year earlier. While week-to-week changes continue to shift with rate movements, refinance activity remains strong compared with the slow pace seen in 2023 and 2024. Larger loan borrowers still dominate the refi space, but the recent rate uptick brought the average refinance loan amount to its lowest level in more than a month.

Still, when viewed against the larger backdrop, refinance demand continues to operate in a healthier post-pandemic range.

MBA Deputy Chief Economist Joel Kan noted that purchase applications saw the biggest improvement.
“Purchase applications picked up almost 6 percent over the week to the strongest pace since September, despite mortgage rates increasing slightly,” Kan said. He highlighted that buyers across conventional, FHA, and VA loan types are more active, especially in areas where inventory has improved and prices are rising more slowly.

Based on unadjusted data, this marks the strongest early November for purchase activity since 2022.

Purchase applications were up 6% seasonally adjusted and 3% unadjusted, bringing them 31% higher than the same week last year. After a quiet late summer and early fall season, the recent gains suggest purchase demand is holding up better than expected as the year winds down.

Refinances made up 55.6% of all mortgage applications last week. Adjustable-rate mortgages (ARMs) dipped to 7.8% of activity. FHA applications rose to 19.4%, VA share slipped to 14.8%, and USDA loans held at 0.2%.

Mortgage Rate Snapshot

• 30-yr fixed: 6.34% (up from 6.31%)
• 15-yr fixed: 5.70% (up from 5.65%)
• Jumbo 30-yr: 6.46% (up from 6.43%)
• FHA: 6.14% (from 6.13%)
• 5/1 ARM: 5.50% (from 5.56%)

Mortgage rates had held near one-year lows throughout late October but have drifted slightly upward as Treasury yields settled following the recent Federal Reserve meeting. Even with the latest uptick, rates remain well below the highs seen in 2023. The combination of more moderate rates and rising inventory has helped lift purchase activity and continues to support the strong year-over-year rebound in refinance volume. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.