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) on Wednesday. This marks the second consecutive week that mortgage applications have declined, with the Purchase Index being 16% lower compared to the same week last year. Joel Kan, MBA vice president and deputy chief economist, explained that homebuyers are waiting for mortgage rates to decrease even further and for more homes to be listed on the market before applying for mortgages. He expects 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.
