The Market Composite Index, which measures mortgage loan application volume, rose from 404.4 to 857.7 in the week ending Nov. 28, a week shortened by the Thanksgiving holiday, the Mortgage Bankers Association said in a release Wednesday.

The Refinance Index also increased dramatically, jumping 203.3 percent to 3,802.8, the MBA said.

"Many borrowers missed an opportunity to take advantage when rates dropped sharply for a brief period when the GSEs (government-sponsored enterprises) were placed under conservatorship," said Orawin Velz, MBA's associate vice president of economic forecasting.

Consumers rushed in, however, after the Fed announced it would buy GSE debt, he said.

"Many of those on the sidelines decided to quickly jump in and take advantage of lower rates before they began to rebound," Velz said.

GSEs include the Federal Home Loan Mortgage Corp. and the Federal National Mortgage Association, Freddie Mac (NYSE:FRE) and Fannie Mae. (NYSE:FNM)

In the week, the average interest rate for 30-year, fixed-rate mortgages decreased from 5.99 percent to 5.47 percent with points falling from 1.23 to 1.16, the organization said.