An aerial view of a residential development on August 8, 2025 in Las Vegas, Nevada.
Justin Sullivan | Getty Images
As the real estate market enters its traditionally weakest season, homebuyers are gasping for one last breath, likely due to increased supply on the market and falling prices.
Mortgage applications to purchase a home rose 6% last week, the largest increase since September, according to the Mortgage Bankers Association's seasonally adjusted index. Volume was 31% higher than the same week a year ago.
This came despite the fact that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $806,500 or less increased from 6.31% to 6.34%, with points for loans with a 20% down payment increasing from 0.58 to 0.62, including the origination fee. This rate is 52 basis points lower than a year ago.
“Purchase applications for conventional, FHA and VA loans have increased as potential homebuyers continue to shop around, particularly in markets where inventory has increased and sales price growth has slowed. Based on the unadjusted purchase index for the week, this was the strongest start to November since 2022,” said Joel Kan, an MBA economist, in a press release.
Get Property Play straight to your inbox
CNBC's Property Play with Diana Olick covers new and evolving opportunities for real estate investors, delivered weekly to your inbox.
Sign up here to get access today.
Demand for refinances, which had been strong last month, fell 3% this week but was still 147% higher than the same week a year ago thanks to lower interest rates.
“Higher mortgage rates slowed some refinance activity as applications for conventional and VA refinances declined during the week and the average loan size for refinances fell to the lowest level in over a month,” Kan added.
Mortgage rates have been little changed so far this week, especially given the bond market shutdown on Veterans Day. Markets are watching the possible end of the government shutdown this week, which could lead to a stronger reaction to interest rates.