One week has brought a 2.7 percent drop n mortgage applicants, according to the Mortgage Bankers Association's Weekly Mortgage Applications survey, which ended June 24.

The fall in applications comes with fixed 30-year mortgage rates dropping to an average of 4.46 percent, down .11 percentage points from the previous week, according to the report. Purchase demand decreased by 3 percent as well.

Mortgage News Daily reports that the current three-week drop comes after a modest uptick in mortgage applicants.

MND's Managing Editor Adam Quinones said that while the housing market is currently witnessing a mini-refinance boom in the primary mortgage market, there hasn't been much activity in the secondary market that would indicate increased rate locking by customers.

"However, if conventional 30-year rates reach 4.25 percent, we'd expect to see a mini-boom scenario play out," Quinones said on MND's Website. "There is much stored demand in the system as many borrowers missed the boat on record low rates in October and early November. This crowd is waiting in the wings for those rates to return."

He said whether those rates return is still very much in the air.

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