And cash buying is down.
Still doesn’t bode well for sales…
By Diana Olick
Oct 22 (CNBC) — More proof that low mortgage rates are not the key to home ownership today: Mortgage rates dropped to their lowest level in nearly 18 months last week, causing an 11.6 percent rise in mortgage applications, according to the Mortgage Bankers Association (MBA). The gains, however, were driven entirely by refinances, just as they have been for several weeks.
Refinance applications jumped a whopping 23 percent week-to-week on a seasonally-adjusted basis; volume was at the highest level since November 2013. Mortgage applications to purchase a home saw no boost at all from lower rates, falling 5 percent from one week earlier and 9 percent from a year ago.