Mortgage Applications Edge Higher Despite Rising Rates

Mortgage Applications Edge Higher Despite Rising Rates

U.S. mortgage applications inched up 0.6% for the week ended Nov. 7 compared with the previous week, according to the Mortgage Bankers Association (MBA). The increase was driven by a solid gain in home purchase activity, even as borrowing costs continued to climb.

Purchase applications rose nearly 6% from the prior week and were 31% higher than the same week in 2024. “Homebuyers are still active, particularly in markets where inventory has improved and price growth has moderated,” said Joel Kan, the MBA’s deputy chief economist, in a statement on Wednesday.

Refinance activity, however, moved in the opposite direction—falling 3% from the previous week but remaining 146% higher than a year earlier.

The average contract interest rate for 30-year fixed-rate mortgages rose to 6.34% from 6.31% the prior week, while the average rate for 15-year fixed mortgages increased to 5.7% from 5.65%.