Mortgage rates dropped to their lowest point in over a year last week, yet this did not result in increased demand.
According to the Mortgage Bankers Association (MBA) on Wednesday, home purchase applications decreased by 5% compared to the previous week, while refinance applications saw a 15% decline.
Even though current rates match those from May 2023, home purchase applications remain 20% lower.
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Read more on long-term mortgage rates dropped to the lowest level in three months.
“MBA economist Joel Kan noted that rates and applications have stabilized following recent market fluctuations that caused rates to plummet. However, it’s important to remember that although rates are lower, they still stand at 6.5%, which is not particularly appealing for borrowers who previously secured rates below 5%,” Kan said.
