Although mortgage rates continue to test new all-time lows, applications took a tumble last week, a sign that consumers continue to be spooked by uncertainty in the overall economy.
According to new figures compiled by the Mortgage Bankers Association, applications fell by almost 5% for the week ending September 2.
Mike Fratantoni, MBA's vice president of research and economics noted that despite the ultra low rates, “refinance application volume fell for the third straight week, and is more than 35 percent below levels at this time last year. Purchase application volume remains relatively flat at extremely low levels, close to lows last seen in 1996."
Refinancings continue to dominate the application landscape, accounting for 77.1% of all new business – just about flat compared to the week prior.
The trade group tracks applications through a proprietary index.
