Applications for mortgages decreased by 0.6% for the week ending March 29, marking the third consecutive week of decline, even though rates were slightly more favorable. Despite the continued drop in mortgage rates, homebuyers are still not enticed to jump into the market, as reported by the Mortgage Brokers Association.
The MBA report revealed that the average 30-year fixed-rate mortgage had fallen to 6.91%, while the 15-year fixed-rate mortgage dropped to 6.35%, the lowest it had been in two months. Joel Kan, MBA vice president and deputy chief economist, attributed the decline in mortgage applications to the persistently high mortgage rates that continued to dampen home buying activity.
This decrease in demand for mortgages follows recent data that indicated a rise in pending home sales in February, suggesting that the stagnant housing market might be starting to show signs of improvement. However, despite these efforts to lower mortgage rates, it appears that homebuyers remain cautious in entering the market, indicating that other factors beyond rates may be at play in influencing their decisions.
