Mortgage Applications Slip as Market Sends Mixed Signals
The latest Mortgage Bankers Association (MBA) survey delivered a week of contrasting trends, painting a picture of a market that’s still trying to find its balance. For the week ending November 28, overall mortgage application volume declined by 1.4% on a seasonally adjusted basis — a shift influenced partly by the Thanksgiving holiday.
Purchase Activity Improves… Kind Of
Even as the broader Market Composite Index slipped, the seasonally adjusted Purchase Index posted a 3% rise compared to the previous week. But when unadjusted, purchase activity tells a different story — dropping 32% week‑over‑week.
Despite that dip, purchase applications are still performing better than they were a year ago, coming in at 17% higher. A complex combination of cooling home‑price growth and expanding housing inventory is nudging some buyers back into the game.
Refinances Cool Off as Rates Ease
The Refinance Index fell 4% from the prior week, even though long‑term mortgage rates declined. The refinance share of all mortgage activity also edged down slightly to 53%.
Interestingly, refinances remain 109% higher than they were during the same week in 2024 — highlighting how dramatic the rate landscape has shifted over the past year.
Rates Dip as Economic Clouds Gather
Interest rates slid across most loan types last week, following a drop in Treasury yields sparked by weakening labor market data and softer consumer confidence.
“The 30‑year fixed mortgage rate declined to 6.32% after steadily increasing over the past month,” said Joel Kan, MBA’s vice president and deputy chief economist.
Kan added that refinance activity slowed because many borrowers seem to be waiting for even better opportunities: lower rates.
Adjustable‑Rate Mortgages Rise
With uncertainty still swirling, adjustable‑rate mortgages (ARMs) saw a slight uptick, now making up 8% of total mortgage applications. ARMs often gain appeal during transitional rate environments as borrowers evaluate short‑term cost savings.
Click to explore why this matters for professionals
For real estate, mortgage, and finance professionals, market weeks like this highlight the importance of understanding rate trends and borrower psychology. Purchase activity rising despite economic “cloudiness” means motivated buyers are paying attention — and so should you.
Whether you’re advising clients or leveling up your expertise, staying current is essential. If you’re expanding your professional path, Cameron Academy offers licensing and continuing‑education programs across real estate, mortgage, insurance, and more to help keep you ahead of the curve.
Getting licensed or staying ahead in your career can be a journey—but it doesn’t have to be overwhelming. Grab your favorite coffee or tea, take a moment to relax, and browse through our articles. Whether you’re just starting out or renewing your expertise, we’ve got tips, insights, and advice to keep you moving forward. Here’s to your success—one sip and one step at a time!
The Real Estate Board of New York (REBNY) has announced a new policy requiring sellers to directly pay the buyer's agent, effective from January 1. This significant shift aims to enhance transparency and address potential conflicts of interest in real estate transactions. The policy comes amidst ongoing lawsuits related to commission sharing and allegations of unethical practices. The implementation of this policy is expected to impact the real estate industry significantly, with sellers needing to factor in the cost of the buyer's agent commission when pricing their properties.
In a significant development, the U.S. Senate has voted to block the implementation of the Consumer Financial Protection Bureau's (CFPB) small business lending rule. This decision has sparked a heated debate over the impact it may have on small businesses across the country. President Biden, in response, has threatened to veto the Senate's decision, emphasizing his commitment to fair lending practices and supporting small businesses. The CFPB's rule, implemented in October 2020, requires lenders to collect and report data on small business lending. This includes information on the race, sex, and ethnicity of borrowers, with the aim of identifying and addressing potential disparities in access to credit for minority-owned and women-owned small businesses. The Senate's decision to block the CFPB's rule has been celebrated by small business advocates and industry groups critical of the CFPB's regulatory approach. However, the implications of this decision remain uncertain, as President Biden's threatened veto looms large.
The world of real estate has recently been shaken by a wave of class-action commission lawsuits, sparking a contentious debate. These lawsuits demand scrutiny to understand their implications and validity. A primary counter-argument is the freedom of consumer choice. In today's digital age, potential buyers and sellers have access to a wealth of online resources, enabling them to undertake real estate transactions independently. Another critical factor is the negotiability of commissions in the real estate sector. Commission rates are not fixed, they are subject to negotiation between the agent and the client. This flexibility allows for open discussions, leading to mutually agreeable terms. Despite the emergence of discount brokerage firms, consumers continue to place their trust in traditional real estate agents. This preference stems not only from cost considerations but also from the value of expertise, guidance, and personalized service that agents offer. Real estate transactions are complex and often involve significant financial investments. Trusted agents provide invaluable insights, market knowledge, and negotiation skills, helping clients make informed decisions and navigate potential challenges confidently.
In the last two years, the housing market has seen a dramatic shift. Soaring mortgage rates and rising home prices have led to the fastest erosion in housing market affordability in modern history, with first-time homebuyers feeling the impact the most. The housing market has undergone significant changes over the past two years, leading to a substantial increase in the income required to purchase a median-priced home. According to recent data from Redfin, a homebuyer must now earn $114,627 to afford the typical U.S. home. This is a 15% increase from the previous year and more than 50% higher than pre-pandemic levels.
The housing market has shown remarkable resilience in the face of rising mortgage rates. Despite rates reaching 8%, new listings data remains steady, indicating a healthy supply of homes for sale. This stability is a positive sign for both buyers and sellers, demonstrating the strength of the housing market. Despite the increase in mortgage rates, sellers in the housing market have maintained their confidence. This confidence is reflected in the steady new listing data, as sellers continue to list their properties without hesitation. It indicates that sellers believe there is still strong demand from buyers and that the potential financial impact of higher mortgage rates does not outweigh the benefits of selling their homes.
The Real Estate Board of New York (REBNY) has introduced a groundbreaking requirement for sellers to directly compensate buyers' agents. This significant change has the potential to transform the real estate industry, eliminating conflicts of interest and promoting a more client-centric approach. This shift in the compensation landscape aims to create a more transparent and trustworthy environment for buyers. Moreover, this shift towards a client-centric approach aligns with the mission and values of Cameron Academy. As a leading provider of real estate education, Cameron Academy is committed to empowering professionals to navigate the evolving industry landscape and prioritize the best interests of their clients.
