Rough week for lending
For the week ending October 14th, mortgage application volume dropped 15 percent from the week prior- a week that was part of a downward trend, according to the Mortgage Bankers Association (MBA). Despite historically low interest rates, headlines this month read “Super low mortgage rates, good luck getting one” and so forth. The current mortgage application volume’s seasonally adjusted index is at the lowest level since December 1996.
Conventional purchase activity dropped 11 percent last week and government purchase activity dropped 5.9 percent. The MBA notes that the government share of purchase activity has increased three consecutive weeks to 43.5, the highest level since April 2011.
Like last week, the refinance share of mortgage activity is down, currently at 77.6 percent of total applications.
Purchase applications up in one region
Mortgage application volume was wildly different from region to region. Purchas applications were up 20 percent in the Pacific region, while the New England, East North Central and South Atlantic regions dropped.
Mortgage rates are still lower than ever, but they are rising, having dropped below four percent for the first time, only to immediately go back above four percent. Housing continues to struggle and lending is no different.