U.S. Mortgage Applications Rise 7.5%, Existing Home Sales Face Downward Pressure

The U.S. mortgage rates have fallen for the fourth consecutive week, driving mortgage applications to their largest increase since mid-April. According to the Mortgage Bankers Association, for the week ending November 6, the average contract rate for a 30-year fixed mortgage decreased by 9 basis points to 7.21%. Borrowing costs have dropped nearly 30 basis points from a nearly two-year high of 7.5% at the beginning of last month, but for many Americans, the cost of loans remains too high. The mortgage application index rose by 7.5%, marking the second weekly increase since the end of August. The refinancing application index increased by 4.5%, rising for three consecutive weeks, but still close to its lowest level since January 2025. Although the decline in mortgage rates is good news for the real estate market, rates need to continue to decrease to truly stimulate potential homebuyers to enter the market. Previously, mortgage rates surged in September, causing the number of pending sales contracts for existing homes to drop to a historic low. The National Association of Realtors is set to release the October existing home sales data on Thursday, with the market expecting the median sales volume to fall to its lowest level since 2010.

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