Mortgage applications have decreased by 2.5% from one week earlier, according to the most recent data from the Mortgage Bankers Associationthe Mortgage Bankers Association's Weekly Mortgage Application Survey for the week ending April 23.
The drop in potential home buyers comes despite the interest rate for 30 year fixed mortgages falling to 3.20% for the third week in a row from 3.17%.And the applications to refinance a house decreased by 1%, that's 18% lower than they were during the same time period one year ago. Data shows
Even with a few weeks of interest rates, most borrowers have likely already refinanced, which is why activity has decreased in the last seven weeks, said Joel Kan, associate vice president of economic and industry forecasting for the Mortgage Bankers Association.
Kan noted that the recent dip in the purchase market comes amid a low home price and rising inventory.The average sale price of new houses in March 2021 was $330,800, and the median sales price was $397,800, up from an average of $346,400 in January, registrar says.
And with scarce inventory, homeowners are bidding over the asking prices in the competitive market, moving up the contingencies for home inspections and appraisals and lowering closing dates by a one-month time period to stay competitive.