Despite Lower Rates, Mortgage Applications Drop

The lowest mortgage rates in three years are not causing much of a stir in purchase applications for home mortgages, down 3 percent in the June 24 week for the third weekly decline straight. The year-on-year increase in purchase applications volume is a still very strong 13 percent, though far below the 30 percent gains seen in March. Even mortgage refinancing activity abated, down 2.0 percent after rising 7 percent in the prior week. The average rate for 30-year fixed rate mortgages on conforming loans ($417,000 or less) fell 1 basis point to 3.75 percent, the lowest rate since May 2013.