Homebuyers were not enticed by lower mortgage rates last week, and the drop was not enough to boost refinances either.
Total mortgage application volume fell 4.1 percent seasonally adjusted for the week ending October 21st, compared to the previous week, according to the Mortgage Bankers Association (MBA).
A drop in consumer confidence may be behind some of the weakness in housing right now. Fannie Mae recently reported a significant decrease in the share of Americans who think now is a good time to buy a home. Other, more general measures of confidence are also lower this month. Mortgage application volume to purchase a home fell 7 percent to the lowest level since January of this year. It is still 9 percent above last year, but annual numbers may be skewed due to new mortgage rules that went into effect last October.