U.S. loan-922">mortgage rates fell to their lowest levels since mid-October, sparking a rush to finance home purchases during the week that includes the Thanksgiving holiday.

The contract interest rate on a 30-year mortgage fell 17 basis points to 6.69% in the week ended November 29, the largest weekly decline since August, according to data released by the Mortgage Bankers Association (MBA) on Wednesday.

MBA's home loan application index rose 5.6% on a seasonally adjusted basis to reach its highest level this year. These numbers are prone to wild swings around the year-end holidays, as evidenced by a roughly 18% jump over the past two weeks.

Mortgage rates track changes in U.S. Treasury yields, which have fallen in recent weeks on expectations that the Federal Reserve will gradually lower its benchmark interest rate. There are signs that Fed officials are slightly more likely to cut borrowing costs for a third consecutive time at their Dec. 17-18 meeting, though some policymakers remain open to the possibility.

MBA's index of refinancing applications fell for the ninth time in the past 10 weeks, falling to its lowest level since May.

The MBA survey, conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data covers more than 75% of all retail residential mortgage applications in the United States.