Mortgage applications declined during Thanksgiving week, according to the Mortgage Bankers Association, which comes as no surprise.
MBA's Weekly Mortgage Applications Survey found that overall mortgage application volume declined 0.9 percent on a seasonally adjusted basis from the previous week. Refinance activity was down as well, as the Refinance Index dropped 2 percent in the same period. However, purchase requests were up, with the Purchase Index increasing 3 percent from one week earlier.
Despite the decline, the refinance share of total applications remained at 81 percent, while the adjustable-rate mortgage share declined to 4 percent. The government share of purchase applications was down to 33 percent, which is the lowest level seen in more than three years.
Mortgage application volume could pick up next week, as there is no holiday and mortgage rates hit new record lows. According to Freddie Mac's Primary Mortgage Market Survey, 15- and 30-year fixed-rate mortgages averaged new lows in the week ending November 21.
"Fixed mortgage rates continued to ease somewhat this week to record lows and should help the ongoing housing recovery," said Freddie Mac vice president and chief economist Frank Nothaft.