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.
