Mortgage loan application volume in the U.S. slipped 2 percent over the past week according to the Mortgage Bankers Association, and that’s despite the benchmark 30-year mortgage rate having dropped back under 3 percent and the 15-year rate having hit a new all-time low.

And in fact, with both refinancing and purchase activity having dropped, purchase mortgage activity was down 18 percent on a year-over-year basis for the third week in a row, and that’s despite an increase, not decrease, in existing-home inventory and with new home inventory nearing a 13-year high.

Comments from Plugged-In Readers

  1. Posted by Dave (Seattle dude)

    People who took the opportunity to refinance due to low rates over the past year have pretty much done so by now. People who chose to purchase a home due to the low rates (often using hefty 401Ks for the down if a first time buyer) have also mostly already done so. Upward pressure on prices is slowing and especially as the economy is showing signs of weakness – one example, the July jobs number was significantly lower than expected.

    • Posted by jag149

      Ha! First time buyer, closing in a week thanks to low interest rates and loan on my 401k. And here I thought I was special…

  2. Posted by SocketSite

    UPDATE: While mortgage application volumes ticked up 3 percent over the past week, with a 2 percent increase in applications to refinance and a 1 percent increase in purchase mortgage activity, purchase mortgage activity is still down 18 percent on a year-over-year basis (for the fourth week in a row).

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