Mortgage application volume continued its steady drop, as refinance activity declined once again in the week ending October 26, according to the Mortgage Bankers Association.
MBA's Weekly Mortgage Applications Survey showed total volume decreased 4.8 percent on a seasonally adjusted basis compared to the previous week. This drop was in large part due to the continuous slow in refinance applications, which fell 6 percent from last week. Meanwhile, purchase requests were up 1 percent from a week earlier.
The drop in refinancing led to the refi share of mortgage activity to decrease from 81 percent to 80 percent. The adjustable-rate mortgage share of activity declined to 4 percent of all applications.
Mortgage activity has slowed in recent weeks, despite the Federal Reserve issuing a third round of quantitative easing to help spur the market, according to Reuters. The slow can possibly be attributed the the decreasing amount of homeowners able to qualify for mortgages due to low credit scores or low equity in their homes because of low prices.