Talking Points
- Total mortgage application volume fell 9.2 percent on a seasonally adjusted basis from the previous week, according to the Mortgage Bankers Association. Applications, however, were 12 percent higher than one year ago.
- The drop was expected, given how quickly mortgage interest rates rose. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.95 percent, from 3.77 percent, with points increasing to 0.39 from 0.38 (including the origination fee) for 80 percent loan-to-value ratio loans.
- Mortgage applications to purchase a home fell 6 percent for the week and are now at the lowest level since January.
- Purchase volume is just 3 percent higher than one year ago. This may have less to do with interest rates and more to do with homebuyers pulling back before the election, uncertain of their economic futures.