The Mortgage Bankers Association was out with its weekly report on morgage applications this morning, and for the week ended last Friday, they were down. CNBC's Diana Olick reports:
Total U.S. mortgage application volume decreased 2.6% for the week on a seasonally adjusted basis, compared with the previous week, according to the Mortgage Bankers Association. They are up nearly 38% from a year ago, when interest rates were higher.
That annual gain is being driven mostly by applications to refinance home loans, which fell 2% last week, but are 63% higher than the same week one year ago. Mortgage applications to purchase a home fell 3 percent for the week and are 13% higher than a year ago.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) fell to its lowest level since May 2013, 3.75%, from 3.76%, with points increasing to 0.36 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. After the Brexit vote, rates plummeted, as investors sold off stocks and headed to the relative safety of the bond market.