Total mortgage application volume dropped 6.2 percent last week from the previous week, as CNBC reports.
Despite historically low mortgage rates, the lack of supply is holding homebuyers back. Applications for a home purchase loan dropped 4 percent over the week. The market is experiencing a shift toward entry level buyers and away from jumbo loans: The average loan size for a home purchase dropped to the lowest level since January.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $424,100 or less remained unchanged at 4.13 percent, with points decreasing to 0.32 from 0.34, including the origination fee, for 80 percent loan-to-value ratio loans.
Mortgage refinance applications decreased 9 percent over the week, and are down 35 percent from last year.