Mortgage application volume fell 4.3% last week from the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Volume was 4.5% higher annually, thanks to stronger refinance activity.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 4.42% from 4.46%, with points increasing to 0.46 from 0.44 for loans with a 20% down payment. Lower rates didn't get more buyers off the fence, either. Mortgage applications to purchase a home fell 4% for the week and were barely 1% higher from a year ago. Purchase volume has been weakening this month, despite brighter signs in the overall housing market. There is more supply of homes for sale, and overheated home prices are finally beginning to chill.