U.S. Mortgage Applications Rise Despite Higher Rates

In a week marked by rising borrowing costs, U.S. homebuyers showed unexpected resilience. According to the latest Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey for the week ending November 21, overall mortgage activity inched upward even as mortgage rates continued to climb.

The survey’s market composite index, which tracks total mortgage loan application volume, rose by 0.2% on a seasonally adjusted basis. This growth came after a significant 5.2% drop the previous week, signaling a modest but notable rebound in activity.

Purchase Activity Strengthens

The most striking movement came from home purchase applications.
The purchase index surged 8%, reversing the 2% decline recorded the prior week. Mortgage demand from buyers appeared across both conventional and government-backed loans.

MBA Vice President and Deputy Chief Economist Joel Kan highlighted that, despite slightly higher rates, purchase applications not only increased week over week but also maintained a stronger pace than the same period last year. He added that government-backed purchase applications (FHA, VA, USDA loans) jumped 9%—their strongest weekly performance since 2023.

Kan also noted that the average purchase loan size fell to its lowest point in two months, aligning with ongoing shifts in affordability trends.

Refinancing Continues to Cool

While homebuying momentum improved, refinancing continued to weaken.
The refinance index fell 6%, following a 7% decline the week before. This brought refinance activity to its slowest pace since September.

The refinance share of total mortgage activity also slipped—from 55.4% the prior week to 53.4%. At the same time, adjustable-rate mortgage (ARM) activity saw a slight rebound, rising to 7.9% from 7.5%.

Kan explained that many homeowners have been hoping to take advantage of rate drops, but with rates climbing roughly 10 basis points over the past four weeks, refinance interest has cooled accordingly.

Mortgage Rates Reach Their Highest Level Since October

The 30-year fixed mortgage rate climbed for the fourth consecutive week, reaching 6.40%, up from 6.37%. This marks the highest level since early October.

Even with slowing home-price growth and periods of rate relief earlier in the year, Kan emphasized that affordability challenges remain prevalent across many markets. As a result, government loan programs continue to attract qualified buyers seeking more accessible entry points into homeownership.

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