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Mortgage rates plummeted for the second week in a row, but that didn’t arouse demand from homeowners or potential buyers.

Rates plunged 10 basis points last week and have fallen 24 basis points in the last two weeks. Still, total mortgage demand declined 5.4% from one week ago, according to data from the Mortgage Bankers Association.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) dropped to 5.74% from 5.84%, with points surging to 0.65 from 0.64, including the origination fee, for loans with a 20% down payment.

“Mortgage rates decreased for the second week in a row, as growing concerns over an economic slowdown and increased recessionary risks kept Treasury yields lower,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

“Rates are still significantly higher than they were a year ago, which is why applications for home purchases and refinances remain depressed. Purchase activity is hamstrung by ongoing affordability challenges and low inventory,” He added.

In its June housing report last week, Realtor.com showed for-sale inventory increasing, recovering at its fastest yearly pace of all time, soaring18.7% year over year. However, there are still 53.2% fewer homes for sale compared with June 2019.

“Our June data shows the inventory recovery accelerated, posting the second straight month of active listings growth in nearly three years. We expect these improvements to continue,” said Danielle Hale, chief economist at Realtor.com, but she added, “The typical buyer has yet to see meaningful relief from quickly selling homes and record-high asking prices.”

According to the Mortgage Bankers Association, the average home purchase loan size was $405,200, which is down from $413,500 for the week that ended June 24, but still 21% higher than the same week one year ago.