Despite mortgage rates falling to record lows, the demand for home loans in the US continued to fall for the third consecutive week, according to the latest data from the Mortgage Bankers Association (MBA).
The MBA’s seasonally adjusted mortgage applications index, comprising both home purchase and refinancing demand, fell 4.9 percent in the week ending 2 September 2011.
In addition, MBA’s seasonally adjusted refinancing application index also dropped 6.3 percent, while its estimate of loan requests for home acquisitions surged 0.2 percent.
The rates for a 30-year fixed mortgage averaged 4.23 percent, a decrease from 4.32 percent a week ago. It was also the second lowest rate since MBA started its survey almost 22 years ago.
The group also noted that 15-year loan rates averaged 3.41 percent, a decrease from 3.49 percent in the prior week.
“Despite these rates, refinance application volume fell for the third straight week and is more than 35 percent below levels at this time last year,” said Mike Fratantoni, Vice President of Research and Economics at MBA.
“Purchase application volume remains relatively flat at extremely low levels, close to lows last seen in 1996,” he added.
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