Mortgage demand from homebuyers increased by 6% as interest rates reached their lowest point in over a month.

• The interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased from 6.86% to 6.69%.
• The number of applications to refinance a home loan decreased by 1% during the week and was 7% lower compared to the same week in the previous year.

Last week, consumers looking to refinance decreased due to the increase in mortgage demand fueled by lower mortgage rates and a higher supply of homes for sale.

The Mortgage Bankers Association's seasonally adjusted index showed a 2.8% increase in total mortgage application volume compared to the previous week, after making an additional adjustment for the Thanksgiving holiday.

The interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.69% from 6.86%, with points falling to 0.67 from 0.70 (including the origination fee) for loans with a 20% down payment. This is the lowest rate in over a month.

The number of mortgage applications to purchase a home increased by 6% during the week, marking the highest level since January. Despite a 21% decrease compared to the same week last year, there may be some inconsistency in the annual comparison due to the fact that Thanksgiving fell on a different week this year compared to last year.

Prospective buyers have more options due to the recent strength in purchase activity, which is being supported by lower rates and higher inventory levels, according to Joel Kan, an MBA economist, in a release.

The number of applications to refinance a home loan decreased by 1% during the week and was 7% lower than the same time last year. Many borrowers currently have loans with significantly lower interest rates than what is available today.

Despite the lower rates, conventional refinance applications remained unchanged, while FHA and VA refinances experienced a resurgence from the previous week, according to Kan.

This week, mortgage rates decreased further, although not significantly. Investors are considering both positive economic news from various Federal Reserve speakers and geopolitical developments in France and South Korea when making investment decisions.

On Wednesday, the ADP employment report and ISM services index will be released, and Federal Reserve Chairman Jerome Powell will participate in a moderated discussion at The New York Times DealBook Summit.