Total mortgage application volume for home loans dropped 3.7 percent in the first full week of February, despite the lowest interest rates in almost 12 months.
The Mortgage Bankers Association's seasonally adjusted index also shows that volume was down 11 percent annually. Applications to buy a home drove overall volume down, falling 6 percent for the week, and 5 percent year-over-year. CNBC reports that real estate agents have reported more traffic at open houses, more listings coming onto the market, but demand didn't match these easing conditions. Home prices remain unaffordable for many buyers, and entry-level supply is still tight.
"Application activity fell last week — even with rates decreasing — as renewed uncertainty about the domestic and global economy likely held potential homebuyers off the market," said Joel Kan, MBA's associate vice president of industry surveys and forecasts. "Despite the recent decline in applications, we still expect that the continued strength of the job market and lower rates will support more purchase activity in the coming months."
