Mortgage applications rose for the fourth consecutive week, increasing 2.8% on a seasonally adjusted basis for the week ending Nov. 29, according to data from the Mortgage Bankers Association (MBA).
The MBA’s Market Composite Index (MCI), which measures loan application volume, included an adjustment for the Thanksgiving holiday. Without the adjustment, the index fell 30% when compared to the previous week. The Refinance Index fell 1% from the previous week and was 7% below the same week a year ago. The seasonally adjusted Purchase Index increased 6% from the previous week.
The refinance share of mortgage activity decreased 0.1% from the previous week to 38.7%. The share of Federal Housing Administration (FHA) applications was unchanged at 16%. The share of Veterans Administration (VA) loan applications increased to 13.6% from 12.4% in the week prior. The U.S. Department of Agriculture loan applications fell to 0.4% from last week’s 0.5%.
“Mortgage rates fell to their lowest level in over a month last week, with the 30-year fixed rate decreasing to 6.69%,” said Joel Kan, MBA’s vice president and deputy chief economist. “The recent strength in purchase activity continues, supported by lower rates and higher inventory levels, which are giving prospective buyers more options compared to earlier in the year. The purchase index increased for the fourth straight week to its highest level since January 2024. Conventional refinance applications declined despite the lower rates, but FHA and VA refinances rebounded from a week ago.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $766,550 or less, decreased to 6.69%, down from 6.86% in the prior week, with points falling to 0.67 from 0.70 for 80% loan-to-value ratio loans.
The average contract interest rate for 30-year fixed-rate jumbo mortgages (greater than $766,550) decreased to 6.85% from 6.97%, with points decreasing to 0.39 from 0.63 for 80% LTV loans. The 15-year fixed-rate mortgages decreased to 6.12% from 6.29%, with points falling to 0.58 from 0.63 for 80% LTV loans.
