• Tue. May 28th, 2024

Mortgage Applications Plummet Despite Low Interest Rates

BySamantha Nguyen

Mar 27, 2024
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 dropped again, 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 mortgage 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. Joel Kan, MBA vice president and deputy chief economist, noted that homebuyers are waiting for mortgage rates to decrease even further and for more homes to be listed on the market. He 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.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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