Mortgage application activity recorded an uptick for the week ending Nov. 29, according to data from the Mortgage Bankers Association (MBA); the data included include an adjustment for the Thanksgiving holiday.
The Market Composite Index, the MBA’s measure of mortgage loan application volume, increased 2.8% on a seasonally adjusted basis from one week earlier. However, the unadjusted index dropped by 30% compared with the previous week.
The seasonally adjusted Purchase Index increased 6% from one week earlier but the unadjusted index decreased by 30% – the latter was also 21% lower than the same week one year ago. The Refinance Index decreased 1% from the previous week and was 7% lower than the same week one year ago while the refinance share of mortgage activity dipped to 38.7% of total applications from 38.8% the previous week.
Among the federal programs, the FHA share of total applications remained unchanged at 16% from the week prior while the VA share of total applications increased to 13.6% from 12.4% and the USDA share of total applications decreased to 0.4% from 0.5%.
Joel Kan, MBA’s vice president and deputy chief economist, observed, “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.”
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