Housing Market Sluggish: Mortgage Applications Plummet Despite Lower Rates, Pending Sales Up

Homebuyers are not taking advantage of the downward trend in mortgage rates, according to recent data from the Mortgage Brokers Association. Despite more favorable mortgage rates during this time, applications for mortgages decreased by 0.6% for the week ending March 29, marking the third consecutive week of decline.

The MBA report revealed that the average 30-year fixed-rate mortgage fell to 6.91%, while the 15-year fixed-rate mortgage dropped to 6.35%, reaching its lowest level in two months. Despite these lower rates, Joel Han, MBA vice president and deputy chief economist, noted that “elevated mortgage rates continued to weigh down on home buying”.

However, there is some positive data on the real estate market as pending home sales in February had increased, suggesting a possible thaw in the previously stagnant housing market. Despite this positive data, potential homebuyers are still hesitant to take the plunge due to concerns about current market conditions.

Overall, the real estate market continues to face challenges as it navigates through fluctuating mortgage rates and changing consumer sentiments. It remains to be seen whether further drops in mortgage rates will eventually lead to an increase in homebuying activity in the coming weeks.