Mortgage Purchase Applications And Refinancing Falls

Despite a drop in fixed mortgage rates to the lowest level since January 2015, purchase applications for home mortgages fell 5 percent in the June 10 week on a seasonally adjusted basis, with the previous week's results adjusted for the Memorial Day holiday. Refinancing activity also cooled and was down 1 percent from the previous week. Without the adjustments, however, purchase applications increased by 17 percent. And the year-on-year gain remains quite impressive, with purchase applications up 16 percent from the same week a year ago, as low rates falling even lower continue to be a stimulus for home buyers. The average rate for 30-year fixed-rate mortgages on conforming loans ($417,000 or less) fell 4 basis points from the prior week to 3.79 percent.