Previously, Mortgage Banker Association announced a sharp drop in mortgage applications.

However , what was surprising about the drop was that there has been a  drop in interest rates as well.

According to a the MBA ,

"The average rate for traditional, 30-year fixed-rate mortgages fell to 6.47 percent during the week ended Aug. 15, from 6.57 percent the previous week.

The average rate for 15-year fixed-rate mortgages, often a popular option for refinancing a home, fell to 5.99 percent from 6.17 percent.

The average rate for one-year adjustable-rate mortgages fell to 7.07 percent from 7.15 percent."

Let's hope that the market has factored in any potential changes that may be adjusted by the FED.

If so, I expect rates to remain level and even drop.

With lower pricing, and lower interest rates I expect a stablization in the upcoming months.