The number of applications for home mortgages dropped last week to the lowest level since mid-July, dampened by a decline in refinancing activity and, to a lesser extent, reduced purchase applications, according to the Mortgage Bankers Association (MBA). Total mortgage application volume fell 1.9 percent last week from the week prior, according to MBA’s composite index that tracks mortgage originations. The drop reflects a 2.8 percent week-over-week decline in applications to refinance existing loans and a 0.2 percent decline in mortgage applications to buy a home. “Refinance volume has been moderating, while purchase volume continues to be lower than expected given the lack of homes on the market,” Mike Fratantoni, MBA’s senior vice president and chief economist, said in the report. The shift toward remote working during the pandemic changed preferences for location and type of housing, exacerbating the existing housing inventory shortage and pushing up prices. National home prices rose 7 to …