The latest report from the Mortgage Bankers Association
shows that the number of families interested in moving into a new home is continuing to drop.
According to the MBA's weekly survey, the number of purchase applications during the week ending October 15 showed a 6.7 percent decline compared with the previous week, and was more than 29 percent below the levels from the same week a year ago. The level of purchases is also now approaching the 13-year low that was set this last July.
"People just don't really have the confidence or ability to buy a new home," Paul Dales, a U.S. economist at Capital Economics Ltd. in Toronto, told Bloomberg
. "A lot of homeowners are constrained by accumulated debts or the fact that they're in negative equity."
Total mortgage volume also retreated, with a weekly decline of 10.5 percent, led by refinance applications, which decreased by 11.2 percent.
Much of the seasonal decline has been blamed on the after-effects of the first-time homebuyer tax credit. A recent report by Clear Capital said that the credit accelerated moving plans for many families, leaving fewer of them hiring moving companies now.