Buyers return despite higher mortgage rates
Mortgage applications increased 0.6% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 7, 2025.
The Market Composite Index, a measure of mortgage loan application volume, rose 0.6% on a seasonally adjusted basis from the previous week. On an unadjusted basis, the index fell 1% compared with the prior week.
The seasonally adjusted Purchase Index climbed 6% from one week earlier. The unadjusted Purchase Index increased 3% from the previous week and was 31% higher than the same week one year ago.
“Purchase applications picked up almost 6% over the week to the strongest pace since September, despite mortgage rates increasing slightly, with the 30-year fixed rate rising to 6.34%,” said Joel Kan, MBA’s vice president and deputy chief economist. “Purchase applications for conventional, FHA, and VA loans increased, as potential homebuyers continue to shop around, particularly in markets where inventory has increased and sales price growth has slowed.”
Kan added, “Based on the unadjusted purchase index for the week, this was the strongest start to November since 2022.”
The Refinance Index declined 3% from the prior week but was 147% higher than the same week last year. Higher mortgage rates affected refinance activity, with conventional and VA refinance applications falling over the week, according to Kan. The average loan size for refinances dropped to its lowest level in more than a month.
The refinance share of mortgage activity decreased to 55.6% of total applications from 57% the previous week. The adjustable-rate mortgage share of activity fell to 7.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.34% from 6.31%, with points rising to 0.62 from 0.58 for 80% loan-to-value ratio loans. The average contract rate for 30-year fixed-rate jumbo loans increased to 6.46% from 6.43%.
The FHA share of total applications rose to 19.4% from 18.5% the week prior, while the VA share dipped to 14.8% from 14.9%. The USDA share edged down to 0.2% from 0.3%.
The MBA survey covers US closed-end residential mortgage applications originated through retail and consumer-direct channels and has been conducted weekly since 1990.
