Housing Demand Surges as Buyers Race to Beat Seasonal Slowdown

In a surprising turn of events, the housing market in the United States is defying its typical seasonal slowdown. As of November 12th, 2025, homebuyers are making a last-minute push to secure their dream homes before the year comes to a close.

The surge in housing demand is driven by a combination of factors. First, there is more supply on the market, as the housing inventory has increased in recent months. Additionally, home prices have started to soften, providing a more favorable environment for buyers.

According to the Mortgage Bankers Association, mortgage applications to purchase a home rose 6% last week, reaching their strongest pace since September. This volume was 31% higher than the same week a year ago, indicating a significant increase in buyer activity.

Despite the uptick in demand, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $806,500 or less has increased to 6.34%, up from 6.31% the previous week. However, this rate is still 52 basis points lower than it was one year ago, making it an attractive time for potential homebuyers to enter the market.

"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," said Joel Kan, an MBA economist.