Falling Mortgage Rates Fail to Spark Buyer Interest as Applications Plunge

Falling mortgage rates failed to entice potential homebuyers last week as mortgage applications and refinancing activity both fell by double-digit percentages, possibly signaling that buyers are becoming more selective as inventory rises. The latest data from the Mortgage Bankers Association (MBA), released on Aug. 21, show that mortgage applications fell by 10.1 percent for the week ended Aug. 16 from one week earlier, while refinancing activity plunged by 15 percent. Purchasing activity fell by 5 percent from the prior week. The declines came despite the fact that mortgage rates on the benchmark 30-year fixed fell for the third consecutive week, to 6.5 percent, the lowest since May 2023....