Lower Mortgage Rates Continue to Fail to Attract Potential Homebuyers

Despite Slight Improvement in Mortgage Rates, Homebuyers Continue to Shy Away from the Market: Insights from MBA Vice President

According to the Mortgage Brokers Association, despite a slight improvement in mortgage rates, homebuyers are still hesitant to enter the market. For the third consecutive week, mortgage applications decreased by 0.6%, marking a continued drop in demand for mortgages.

Joel Kan, MBA vice president and deputy chief economist, explained that high mortgage rates continue to dampen home buying activity, despite the recent decline in rates. The average 30-year fixed-rate mortgage has fallen to 6.91%, while the 15-year fixed-rate mortgage dropped to 6.35%, its lowest point in two months.

Recent data suggests that pending home sales increased in February, indicating that the stagnant housing market might be showing signs of improvement. However, it appears that other factors beyond rates may be influencing homebuyers’ decisions to remain cautious about entering the market.

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