Mortgage rates held steady last week, but homebuyers pulled back due to economic concerns.

Mortgage applications for home purchases dropped 4% from the previous week and were only 3% higher than a year ago, despite lower interest rates.

The average 30-year fixed rate dipped slightly to 6.89%.

Refinance applications also fell 4% but remained 42% higher than last year, CNBC has reported.

Economic uncertainty and labor market weakness continue to weigh on demand, with market movement expected after key data releases later this week.

Written by B.C. Begley