This summer’s pricey and ultra-competitive housing market may be spooking some would-be home buyers. Total mortgage application volume for home purchases and refinances dropped last week by 4.9 percent on a seasonally adjusted week-to-week basis, the Mortgage Bankers Association reports. Applications are now 12 percent lower than they were a year ago. Home loan applications led the decline, with total applications dropping 6 percent last week. Purchase applications are now just 1 percent higher than a year ago—when mortgage rates were much lower. Mortgage rates have been on the rise in 2018, adding to affordability troubles for home buyers. The 30-year fixed-rate mortgage rose from 4.83 percent to an average of 4.84 percent last week, the MBA reports. Home refinancing applications dropped 4 percent last week and are 27 percent lower than a year ago. Rising mortgage rates have given homeowners less incentive to refinance.

Source: CNBC