Purchase Applications at Their Lowest Point Since December

Mortgage purchase application volume is at its lowest level since last December, declining 4% on a seasonally adjusted basis compared with the previous week, the Mortgage Bankers Association said.

Home sellers and potential buyers are worried about the state of the U.S. economy and that is contributing to the slowdown in purchase applications. Fewer offers are being made by buyers while fewer sellers see now as a good time to list their property.

Total application volume declined 7% on a seasonally adjusted basis for the week ended Nov. 1. Refinance application volume is down 8%. The share of refi apps fell one percentage point to 66%.

The unadjusted purchase application volume for the same week is 2012 is unchanged.

The average contract rate for the 30-year conforming FRM (MBA defines this as a loan with a balance of $417,500 or under) for the survey period is 4.32%, down one basis point from the previous week. Federal Housing Administration-insured loans had an average contract rate for the week of 4.17%, an increase of one basis point.

The rate for the jumbo 30-year FRM is up one basis point to 4.37% and the rate for the 15-year FRM is up two basis points to 3.44%.

The average contract rate for the 5/1 adjustable-rate mortgage declined nine basis points to 3.08%. ARMs made up just 7% of the week’s applications.