Mortgage Rates Could See More Volatility Next Week

Seasonally adjusted mortgage application activity edged 1.4% lower last week according to MBA’s Weekly Mortgage Applications Survey for the week ending November 28. Unadjusted applications were down sharply (33%) due to the holiday. The Refinance Index slipped 4% from the previous week but remains 109% higher than the same week one year ago—still a significant year-over-year improvement, even as borrowers appear to be waiting for lower rate levels before jumping in more aggressively. Purchase applications were more resilient, rising 3% seasonally adjusted. On an unadjusted basis, purchases fell 32% from the prior week (again largely driven by the holiday), but remain 17% above last year’s levels—a continued sign of underlying buyer demand supported by easing prices and graduall