Mortgage rates are coming down. Borrowers still aren't biting.

Home loan apps fell for the third week in a row. Combined buy and refi volume dropped 0.8% through Friday, per the Mortgage Bankers group. Refi took the bigger hit - down 3% from the week before and 4% lower than a year ago.

Rates Are Lower. But Not Low Enough.

The 30-year fixed rate is at 6.19% as of Wednesday - down more than a quarter point from the 6.47% it hit at the end of March. The 15-year fixed sits at 5.70%.

But those rates are still nearly half a point above the three-year lows from late Feb. That gap is big enough to keep waiting buyers off the market.

MBA's VP Joel Kan said "higher rates and ongoing worry weighed down on apps again."

The Ceasefire Could Be the Turning Point

Here's the fun part. The Iran ceasefire sent bond yields down 10 points on Wednesday. Lower yields pull mortgage rates down.

If oil stays below $100 and the truce holds, experts see 30-year rates going toward 6.0% to 6.3% by late June. That could open the refi window and bring some buyers back.

What to Watch

Buy volume actually rose 1% from the week before - a small sign spring buying isn't dead. But until rates drop well below 6%, the housing market is stuck.

The ceasefire just gave rates their best shot to drop since Feb.