Significant declines in mortgage application volume in the northeast due to Hurricane Sandy caused total volume to drop in the week ending November 2, according to the Mortgage Bankers Association.
MBA's Market Composite Index showed that total application volume decreased 5 percent on a seasonally adjusted basis. Both the Refinance Index and Purchase Index also fell 5 percent compared to the previous week.
Despite the decline in activity, the refinance share and adjustable-rate mortgage share of activity went unchanged. The Home Affordable Refinance Share of activity jumped from 25 to 27 percent.
"Last week's storm had a significant impact on application volumes on the East Coast," said Mike Fratantoni, MBA's vice president of research and economics. "Applications fell more than 60 percent compared to the prior week in New Jersey, almost 50 percent in New York and nearly 40 percent in Connecticut."
Although mortgage rates have hovered around record lows for much of the past month, application volume continues to decline, which could be a sign that many are struggling to get pas tight credit restrictions. Nonetheless, those who are able to qualify can take advantage of highly affordable rates.