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Despite Lowest Rates In A Year, Mortgage Applications Fall

June 15, 2016

Mortgage application volume dropped 2.4 percent in early June despite economic concerns pushing mortgage rates down to levels that haven’t been seen since the beginning of 2015, CNBC reports.

Applications to refinance a home loan didn’t benefit from the low rates, either, as they fell by one percent from the previous week. Despite the drop from one week earlier, applications for refinancing a home loan are almost 52 percent higher than they were one year ago when interest rates were higher.

Part of why the low interest rates aren’t leading to a influx in mortgage applications may be due to the fact that homebuyers are more concerned about credit availability than they are about current interest rates. Despite being expected to rise for a year now, rates have consistently ended up back near historic lows.

Finding a home is another preoccupying worry people have that is taking away some of the focus on low interest rates. A recent Trulia survey conducted by Harris Poll found that almost one-third of potential homebuyers were worried about their ability to find a home while only 20 percent were worried mortgage rates would rise before they bought.

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