The average contract interest rate on 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) in the US edged up to 6.34% in the week ending October 7th, 2025, from 6.31% the previous period, marking the second consecutive weekly increase, according to the MBA. The rate is 52 basis points lower than it was one year ago. Meanwhile, despite higher borrowing costs, mortgage applications rose 0.6% following a 1.9% decline in the previous period. Applications to purchase a home jumped 5.8%, while refinancing requests fell 3.3%. “Purchase applications for conventional, FHA, and VA loans increased, as potential homebuyers continue to shop around, particularly in markets where inventory has increased and sales price growth has slowed. Based on the unadjusted purchase index for the week, this was the strongest start to November since 2022,” said Joel Kan, an MBA economist.