Mortgage applications fall over Thanksgiving despite rate drop

Mortgage application volume dipped 0.8% over the Thanksgiving holiday, according to data from the Mortgage Bankers Association’s latest survey.

Overall mortgage applications in the US dropped 0.8% on a seasonally adjusted basis for the week ending November 25. When unadjusted, applications were down 33% week over week.

“Mortgage rates declined again last week, following bond yields lower. The 30-year fixed mortgage rate decreased to 6.49% and has now fallen 57 basis points over the past four weeks,” said Joel Kan, MBA vice president and deputy chief economist. “Additionally, mortgage rates for most other loan types declined. The economy here and abroad is weakening, which should lead to slower inflation and allow the Fed to slow the pace of rate hikes.”