Loan demand was on the rise last week, posting a strong rebound that was driven mostly by applications to purchase a home, the Mortgage Bankers Association reports in its seasonally adjusted weekly mortgage market survey, reflecting the week ending Nov. 14. The increase in demand came despite interest rates mostly staying flat for the week.

Total application volume, which reflects applications for home purchases and refinances, climbed nearly 5 percent week-to-week. Broken out, refinance applications rose 1 percent week-to-week, while applications for home purchases, viewed as a gauge of future home buying activity, surged 12 percent. It was the highest level for purchase applications since July, the MBA reports.

"The MBA and other data are showing strength in the market for new homes, likely reflecting the boost from continued job growth in recent months," says Michael Fratantoni, the MBA’s chief economist.

Nevertheless, despite the rebound, purchase applications remain 6 percent below year-over-year levels.

Meanwhile, the 30-year fixed-rate mortgage declined slightly last week to 4.18 percent from 4.19 percent the week prior, the MBA reports.

Source: CNBC