Mortgage application volume edged up 0.5% on an adjusted basis during the week ended November 8, as the average rate for a 30-year, fixed-rate mortgage increased to 6.86%, up from 6.81% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 2% compared with the previous week but were up 43% compared with the same week one year ago.
Applications for purchases increased 2% from one week earlier and were up 1% compared with the same week one year ago.
“Mortgage rates continued to increase last week, driven by higher Treasury yields as financial markets digested the likely impacts of a Trump presidency,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “The Federal Reserve’s 25-basis-point rate cut was already anticipated and did little to move the markets. The 30-year fixed rate was at 6.86 percent last week, its highest since July 2024. However, despite the increase in rates, applications increased for the first time in seven weeks.”
“Purchase applications picked up and remained close to levels from a year ago,” Kan adds. “FHA and VA purchase applications drove the stronger overall purchase activity, increasing 3 percent and 9 percent, respectively. FHA mortgage rates bucked the overall trend and were lower over the week, which likely helped some borrowers. Conventional purchase applications were also up slightly. Meanwhile, the upward climb in rates led to refinance activity falling to its lowest level since May 2024.”
The refinance share of mortgage activity remained unchanged at 39.9% of total applications.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.5%.
Photo: Ian MacDonald