WASHINGTON — Applications for U.S. home loans dropped significantly last week, according a Mortgage Bankers Association (MBA) survey.
The MBA said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 7% in the week ended Nov. 1. The index jumped 6.4% the previous week.
The survey's refinance index decreased by 7.9% and the purchase index, a leading indicator of home sales, fell by 5%.
Last week's drop is the first one-week decline of greater than 1% in months, and comes at a time when there is a great deal of uncertainty about when the Fed will slow its stimulus program.
Last week 30-year mortgage rates fell one basis point to 4.32%, according to MBA data.
The mortgage survey covers more than 75% of U.S retail residential mortgage applications, according to the MBA.
