Tue. Jun 25th, 2024
Lower Rates Fail to Tempt Potential Homebuyers This Week

Despite a decrease in the 30-year fixed mortgage rate to 6.93%, mortgage applications decreased last week, marking the second consecutive week of declines. The volume of mortgage applications was down by 0.7% for the week ending March 22, according to data from the Mortgage Bankers Association (MBA).

Both loan applications for home purchases and refinancing were lower, with the Purchase Index showing a 16% decrease compared to the same week a year ago. Joel Kan, MBA vice president and deputy chief economist, explained that homebuyers are waiting for mortgage rates to decrease further and for more homes to become available on the market. He anticipates that lower rates will eventually lead to more inventory becoming available as the lock-in effect diminishes.

Kan also noted that the gradual reduction in mortgage rates may lead to rates moving closer to 6% by the end of the year, which could further impact the housing market. Despite this decline in mortgage applications, there is optimism surrounding the potential for increased inventory and affordability in the housing market as interest rates continue to drop.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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