Mortgage Applications Down in Spite of Rock-Bottom Mortgage Rates

October 06, 2011 / Russell Legato, Residential Property Analyst

The Mortgage Bankers Association of the US (MBA) publishes a weekly report of applications across the world of mortgage activity for residential purposes, tracking up to around 50% of all applications made for both 30 year and 15 year fixed term loans. As such, the report is one of the most useful and accurate tools in the country today for monitoring performance of both new and used home purchases, along with refinance demand.

Mortgage Applications Down in Spite of Rock-Bottom Mortgage Rates

The latest data to be released has indicted that national average rates for 30 year fixed term mortgages have once again crept a little lower, falling 4 basis points to 4.11% since the previous week, while the refinance application volume fell 5.2% and the purchase application volume declined 0.8%.

Rates across the board have been in a state of very minor flux over the past few days, leading to most major packages remaining on or around the lowest levels seen in several decades.

However, as the above figures clearly demonstrate, even something of a golden period for locking in a once in a lifetime deal has not proved enough to encourage more new and used home buyers to enter into contracts, with the number of mortgage applications once again entering a state of freefall.

It will of course be interesting to see how the market behaves over the coming weeks, but it must be acknowledged that for those looking to strike a great deal, they may be on borrowed time to say the very least.

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