Despite Lower Rates, Mortgage Demand Falls

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by UrbanTurf Staff

Demand for mortgages for home purchases fell last week, even as rates dropped. 

The Mortgage Bankers Association (MBA) reported Wednesday that mortgage application volume to purchase a home fell 2% last week, as long-term rates fell to 7.09%.

“The decline in rates led to a small boost to refinance applications, including another strong week for VA refinances,” Joel Kan, MBA’s Vice President and Deputy Chief Economist, said in a release. “However, the overall level of refinance activity remains low. While the downward move in rates benefits prospective homebuyers, mortgage rates are still much higher than they were a year ago, while for-sale inventory remains tight.”


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