Wednesday, November 12, 2025, Home in Hercules, California, USA.
David Paul Morris | Bloomberg | Getty Images
Mortgage rates fell noticeably last week after weeks of increases, but not enough to make a big difference in demand from current borrowers and potential homebuyers. Total mortgage applications fell 1.4% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index. Additional adjustments have been made for the Thanksgiving holiday.
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 by 0.60 to 0.58 points and from 6.40% to 6.32%.
“Mortgage rates also fell as Treasury yields fell following data showing a weak labor market and declining consumer confidence,” said Joel Kang, vice president and deputy chief economist at MBA.
Despite this decline, mortgage refinance applications fell 4% for the week, but rose 109% compared to the same week last year, when interest rates were much higher.
The number of applications for mortgages to buy homes increased by 3% during the week and by 17% compared to the same week last year. Demand for purchases this fall has been quite subdued, with rising home prices, relatively high mortgage rates and economic uncertainty weighing on consumers.
“We are seeing mixed results each week as the broader economic outlook remains uncertain, even though slower home price growth and increased inventory for sale are bringing some buyers back to the market,” Kang added.
The share of variable rate mortgages increased to 8% of total applications as consumers continued to seek more savings. ARMs are cheaper and can be locked in for up to 10 years. These tend to be more common in high rate environments.
Opening interest rates were mixed this week. Separate research from Mortgage News Daily found that prices rose sharply on Monday, but rebounded slightly on Tuesday. There were not many economic indicators that influenced interest rates.
“That could change on Wednesday with the confluence of ADP and ISM services, both of which have the potential to impact fixed income markets, even before the data movement shutdown temporarily heightened the importance of private data,” said Matthew Graham, chief operating officer at Mortgage News Daily.
