US Economy News Today: Potential Homebuyers Weren't Tempted By Lower Rates This Week

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Mortgage Applications Dip Again Despite Declining Rates

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The volume of mortgage applications dipped again last week, despite interest rates on home loans moving lower, data from the Mortgage Bankers Association (MBA) showed Wednesday.

Mortgage applications for the week ending March 22 were lower by 0.7% from the prior week. It’s the second straight week mortgage applications declined, as potential homebuyers weren’t drawn in by a drop in the 30-year fixed mortgage rate to 6.93%.

Loan applications for home purchases and refinancing were lower, with the Purchase Index coming in 16% lower than the same week from a year ago.

“Homebuyers continue to hold out for lower mortgage rates and for more listings to hit the market,” said Joel Kan, MBA vice president and deputy chief economist. “Lower rates should help to free up additional inventory as the lock-in effect is reduced, but we expect that will only take place gradually, as we forecast that rates will move toward 6% by the end of the year.”

-Terry Lane