Kan noted that applications for loans backed by the Federal Housing Administration and the U.S. Department of Veterans Affairs helped drive stronger purchase activity, increasing 3% and 9%, respectively.

"FHA mortgage rates bucked the overall trend and were lower over the week, which likely helped some borrowers," Kan said. "Conventional purchase applications were also up slightly."

Mortgage rates moved higher this Tuesday; the bond market was closed Monday for the Veterans Day holiday.