US mortgage applications rise despite higher rates

(Sharecast News) - US mortgage applications edged higher over the first week of November, partially rebounding after a decline the week before, despite a rise in long-term mortgage rates. According to the Mortgage Bankers Association of America, the volume of applications rose 0.6% over the seven days to 7 November, following a 1.9% drop the previous week.

Applications to refinance mortgages dropped by 3.4%, while applications to buy new homes rose 5.8%, hitting their highest levels since September.

Meanwhile, the average interest rate on a 30-year fixed mortgage rose for the second straight month, increasing to 6.34% from 6.31% previously, the MBA said.

"Purchase applications for conventional, FHA, and VA loans increased, as potential homebuyers continue to shop around, particularly in markets where inventory has increased and sales price growth has slowed," said MBA economist Joel Kan.

"Based on the unadjusted purchase index for the week, this was the strongest start to November since 2022."