Mortgage application activity declined significantly during the week ending July 6, despite rates hovering at all-time lows.
Activity fell 2.1 percent from the previous week, according to a report from the Mortgage Bankers Association. This outcome was adjusted for a lapse in activity as a result of the Independence Day holiday.
Specifically, mortgage records indicate that purchase requests actually rose 3 percent, but this was offset by a decline in refinancing, the report said. The refinance share dipped 4 percent and accounted for just 77 percent of activity.
A recent drop in mortgage rates, caused by revived economic uncertainty, appears to not have been enough to convince a greater number of borrowers to restructure their loans into more favorable terms.
Recently, the average rate for a 30-year fixed-rate mortgage fell to just 3.62 percent, according to a report from Freddie Mac. Meanwhile, the rate for a 15-year FRM averaged 2.89 percent. Since both of these rates are record lows, it may have surprised some industry experts that overall mortgage activity declined during the first week of July.