The Mortgage Bankers Association reports that total mortgage application volume – including for refinancings and home purchases – dropped 2.4 percent last week on a seasonally adjusted basis. Applications for home purchases saw the largest weekly drop by 5 percent last week. Still, purchase applications are 16 percent higher than a year ago. Meanwhile, applications for refinancings dropped 1 percent week-to-week. But applications for refinancings are 52 percent higher than a year ago. "Markets reacted to the weaker than anticipated job market report by recalibrating their expectations regarding the Fed's next move,” says Michael Fratantoni, MBA’s chief economist. “Additionally, global investors concerned about the potential for Brexit and its implications have once again led to a flight to safety, driving down Treasury yields. As a result, conventional mortgage rates dropped to their lowest levels since 2015 last week, while FHA rates dipped to their lowest level since 2013." MBA reported that the average 30-year fixed-rate mortgage fell to 3.79 percent last week. “Potential homebuyers are more concerned about finding a home to buy than about securing a good interest rate on a mortgage,” CNBC reports. Indeed, nearly one-third of home shoppers say they were concerned they wouldn’t be able to find a home for sale this year, according to an online survey conducted by Harris Poll this month.

Source: CNBC