Homebuyer demand caught a chill as November approached.
Mortgage loan applications volume fell 3.3%, according to the latest weekly survey from the Mortgage Bankers Association.
The refinancing and purchasing indexes fell as well from the prior week.
The Refinance Index decreased 4% from the previous week and was 33% lower than the same week one year ago.
The Purchase Index was down 2% from the prior week.
"Purchase activity continues to be held back by high prices and low for-sale inventory, but current applications levels still point to healthy housing demand," said Joel Kan, MBA’s associate vice president of economic and industry forecasting. "MBA is forecasting for a record $1.6 billion in purchase mortgage originations this year, and sustained demand leading to another record year in 2022."
The average interest rate for a 30-year fixed mortgage decreased to 3.24% from 3.30%.
"Mortgage rates decreased for the first time since August, as concerns about supply-chain bottlenecks, waning consumer confidence, weaker economic growth, and rising inflation pushed Treasury yields lower," added Kan. "Most of the decline in rates came later in the week, which is likely why refinance applications declined to the lowest level since January 2020, and the overall share of activity fell to the lowest since July 2021."
The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.