Mortgage demand fell for the second week in a row, sinking to the lowest level since early 2020 as low inventory and high home prices continue to weigh on the housing market, CNBC reports.
According to the Mortgage Bankers Association’s seasonally adjusted index, mortgage applications decreased by 1.8% last week, with both refinance and purchase applications dropping.
Not even falling interest rates spurred demand. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) dropped 5 basis points to 3.15, with points decreasing to 0.38 from 0.39 (including the origination fee) for loans with a 20% down payment.
Mortgage applications to refinance a home dropped 2% for the week and were 8% lower than a year ago. Home purchase applications dropped 1% for the week and came in 14% lower than a year ago. Read the full story.