Mortgage application volume slipped 1.4% on a seasonally adjusted basis for the week ending Nov. 28, according to the latest weekly survey from the Mortgage Bankers Association (MBA). The results include adjustments to account for the Thanksgiving holiday.

While the overall Market Composite Index, which measures mortgage loan application volumes, decreased, the seasonally adjusted Purchase Index rose 3% from the previous week. However, on an unadjusted basis, the Purchase Index dropped 32% compared to the week prior, though it remains 17% higher than the same week a year ago.

The Refinance Index fell 4% from the previous week but continues to show strong year-over-year growth, sitting 109% higher than the same week in 2024. The refinance share of mortgage activity also decreased slightly to 53% of total applications, down from 53.4% the previous week.

The adjustable-rate mortgage (ARM) portion of activity rose to 8% of total applications.

Interest rates moved lower across most loan types, tracking a decline in Treasury yields driven by data indicating a weakening labor market and dipping consumer confidence.

“The 30-year fixed mortgage rate declined to 6.32% after steadily increasing over the past month” said Joel Kan, MBA’s vice president and deputy chief economist, in a press release.

Kan noted that despite the drop in rates, refinance activity cooled as borrowers seemingly held out for further declines.

Regarding the purchase market, Kan observed, “Purchase applications were up slightly, but we continue to see mixed results each week as the broader economic outlook remains cloudy, even as cooling home-price growth and increasing for-sale inventory bring some buyers back into the market.”