Mortgage applications to buy a home jumped 6% last week, marking the strongest start to November since 2022, according to the Mortgage Bankers Association. Compared with the same week last year, demand is 31% higher.
This surge comes even though the average 30-year mortgage rate rose slightly to 6.34% from 6.31%, with points increasing to 0.62 from 0.58. Despite the higher rates, more homes on the market and slower price growth are attracting buyers.
Refinance activity, on the other hand, fell 3% for the week, though it remains 147% higher than last year, thanks to previously lower rates.
MBA economist Joel Kan said buyers are taking advantage of markets where inventory has increased and price growth has slowed, continuing to shop around despite the rising interest rates.
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With mortgage rates relatively stable this week and uncertainty over the government shutdown, the housing market is entering the seasonally slow period with surprisingly strong buyer activity.