May 24, 2024 1:18 am
Lower Interest Rates Failed to Entice Potential Homebuyers This Week

Despite a decrease in interest rates on home loans, the volume of mortgage applications has once again dropped, according to data from the Mortgage Bankers Association (MBA) revealed on Wednesday. For the week ending March 22, mortgage applications were 0.7% lower than the previous week, marking the second consecutive week that applications have declined. The drop in the 30-year fixed mortgage rate to 6.93% did not entice potential homebuyers to apply for mortgages.

Both loan applications for home purchases and refinancing were lower last week. The Purchase Index was 16% lower compared to the same week last year, indicating that homebuyers are waiting for mortgage rates to decrease even further and for more homes to be listed on the market before applying for a mortgage. Joel Kan, MBA vice president and deputy chief economist, anticipates that lower rates will eventually lead to more inventory becoming available, but this change is expected to occur gradually. Kan predicts that rates will likely rise towards 6% by the end of the year.

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