Weekly mortgage demand stalls, even though rates drop to lowest since April 2023

Mortgage rates have dropped for four consecutive weeks, yet both homeowners and homebuyers remain unimpressed, as reflected in the minimal increase in application volume.

Despite seeing a decrease in average contract interest rates for 30-year fixed-rate mortgages, demand for refinancing has slightly dipped, indicating a cautious market sentiment among borrowers.

The majority of borrowers hold mortgages below 6%, leading to reluctance in refinancing unless significant savings of at least 75 basis points can be achieved, thereby limiting refinancing activity.

While purchase applications rose by 1% this week, they are still 9% lower year-over-year, showcasing that prospective homebuyers are choosing to wait for better market conditions.

Read at www.cnbc.com