Mortgage Rates Rise: Loan Demand Drops 5%
- Mortgage rates continued their upward trend for the third consecutive week, impacting both existing homeowners and prospective buyers.The mortgage Bankers Association (MBA) reported a 5.2% decrease in total...
- According to the MBA's Weekly Mortgage Applications survey, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) increased to 7.92% as...
- The decline in application volume was driven by both refinance and purchase applications.
“`html
Mortgage Rates Climb for Third Week, Dampening Homebuyer demand
Published November 23, 2025, 19:25:52 PST
Key Takeaways
Mortgage rates continued their upward trend for the third consecutive week, impacting both existing homeowners and prospective buyers.The mortgage Bankers Association (MBA) reported a 5.2% decrease in total mortgage submission volume for the week ending November 15, 2025, compared to the previous week. This decline signals a cooling effect on the housing market as affordability challenges increase.
Mortgage Rate Trends and Application Volume
According to the MBA’s Weekly Mortgage Applications survey, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) increased to 7.92% as of November 15, 2025. This is up from 7.81% the previous week. The rate for jumbo loans (above $806,500) also rose, reaching 8.25%.
here’s a breakdown of the key rate changes:
| Mortgage Type | Nov 8, 2025 (%) | Nov 15, 2025 (%) | Change (basis points) |
|---|---|---|---|
| 30-Year Fixed (Conforming) | 7.81 | 7.92 | +11 |
| 30-Year Fixed (Jumbo) | 8.14 | 8.25 | +11 |
| 15-Year Fixed | 7.13 | 7.24 | +11 |
| ARMs (5/1) | 7.88 | 7.99 | +11 |
The decline in application volume was driven by both refinance and purchase applications. Refinance applications fell by 7.4% week-over-week,while purchase applications decreased by 4.1%.The MBA’s Purchase Index, which measures mortgage applications for home purchases, dropped to 205.3,its lowest level as January 2024.