Mortgage applications continue to falter despite lower mortgage rates and far less dramatic home price gains than a year ago.
Last week, total application volume fell 2.7 percent from the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association. Applications to refinance were down 4 percent. They had risen slightly in previous weeks despite basically stagnant rates—but possibly on a slight easing of some underwriting. Refinance volume is down nearly 28 percent from a year ago.
Mortgage applications to purchase a home continued to slide, falling 1 percent last week to their lowest level since February. However, they're down just under 10 percent year to year, a smaller annual drop than in previous weeks. Mortgage-dependent buyers have not come back to the housing market as quickly as some expected. Home sales in the second quarter were better than the bitter winter months but still off 4.5 percent from a year ago, the National Association of Realtors reported Tuesday.