Homebuyers Holiday Push: Interest Rates Remain High
- Mortgage submission volume decreased slightly this week, driven by a drop in refinance applications.However, government loan programs continue to attract buyers, and the average purchase loan size has...
- According to the Mortgage Bankers Association (MBA), the average purchase loan size decreased to its lowest level in two months.
- Applications to refinance a home loan dropped 6% for the week.Though, this decline is largely attributed to a comparison with exceptionally low numbers from the same week in...
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Mortgage Applications Dip as rates Fluctuate, Home Purchase Loan Sizes Shrink
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Published November 26, 2025, at 15:59 PST
Key Takeaways
Mortgage submission volume decreased slightly this week, driven by a drop in refinance applications.However, government loan programs continue to attract buyers, and the average purchase loan size has reached a two-month low. Fluctuations in mortgage rates, influenced by trading conditions and economic data, are contributing to the market’s dynamic.
Purchase and Refinance Trends Diverge
According to the Mortgage Bankers Association (MBA), the average purchase loan size decreased to its lowest level in two months. Joel Kan, MBA Vice President and Deputy Chief Economist, noted that government loan programs remain appealing to qualified buyers. The MBA’s Weekly Mortgage Applications Survey provides detailed data on these trends.
Applications to refinance a home loan dropped 6% for the week.Though, this decline is largely attributed to a comparison with exceptionally low numbers from the same week in 2024, with refinance applications being 117% higher year-over-year. This ample annual increase doesn’t signal a refinance boom, but rather reflects the considerably depressed levels of a year ago.
| Application Type | Weekly Change | Year-over-Year change |
|---|---|---|
| Purchase | Slight Decrease | Data Not Available |
| Refinance | -6% | +117% |
Mortgage Rate Fluctuations and Market Influences
Mortgage rates experienced a slight decrease at the beginning of the week, as reported by Mortgage News Daily (MND). Matthew Graham, MND’s chief operating officer, attributed this betterment to “idiosyncratic trading conditions” often observed during major holiday weeks, rather than fundamental economic events.
However,Graham also noted that Tuesday’s economic data and events contributed to the rate decline. These included a weaker-than-expected reading in the weekly employment numbers from ADP (ADP Employment Report) and speculation surrounding the potential nomination of Kevin Hassett as the next federal reserve chair. Hassett’s perceived stance on monetary policy is considered ”rate-amiable” by some analysts.