A “For Sale” sign in front of a home in Crockett, California, USA on Wednesday, November 12, 2025.
David Paul Morris | Bloomberg | Getty Images
Mortgage rates have remained in the same range for about two months, giving current borrowers and potential home buyers little incentive to enter the market. The Mortgage Bankers Association’s seasonally adjusted index shows that total mortgage applications were essentially flat last week, increasing just 0.2% from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $806,500 or less, including origination fees for loans with a 20% down payment, decreased from 0.62 to 0.60 points and increased from 6.37% to 6.40%. This was the highest level since early October. The average interest rate for the same week last year was 46 basis points higher.
Despite the small interest rate hike, the number of applications for mortgages to buy homes increased by 8% in the week and 20% compared to the same week last year. This was driven by buyers looking for cheaper loans. The government purchasing index, which includes FHA, VA and USDA claims, rose 9% this week, the strongest week since 2023.
“Affordability remains a challenge in many markets, and government financing programs remain attractive to qualified buyers looking to purchase a home. Average purchase loan amounts decreased to their lowest level in two months,” said Joel Kang, MBA Vice President and Principal Deputy Economist.
The number of mortgage refinance applications fell 6% for the week, but rose 117% compared to the same week last year. This huge annual difference is not due to a refinance boom. It’s simply that a year ago the numbers were very low.
Mortgage rates have fallen slightly since the beginning of this week, according to a separate survey by Mortgage News Daily (MND).
“The improvement in interest rates and bonds has less to do with recent underlying events and more to do with the unique trading conditions that often occur during long holiday weeks,” said Matthew Graham, chief operating officer at MND. “That said, some statistics and events (Tuesday) contributed, including another weak weekly jobs report from ADP and the reaction to rumors that interest rate-friendly Kevin Hassett will be the next Fed chairman.”
