Home loan applications fell last week to the lowest level since mid-March, driven by a big drop in refinancing demand even as mortgage rates clung to record lows, according to the Mortgage Bankers Association on Wednesday.
A two-month low in requests for loans to purchase homes was especially disappointing, coming in the midst of the important spring sales season when potential buyers usually emerge from winter hiatus, economists said।
"Home sales are dismal," said Chuck Dannis, president of Crosson Dannis, a real estate appraisal and consulting firm in Dallas। "We've got to figure out how to get the offense back on the field. It doesn't appear at this time that just simply low interest rates are going to do that."
Average 30-year mortgage rates dropped 0।11 percentage points to 4.62% last week. The rate nearly matched the all-time low of 4.61% set in the week ended March 27 and was well below 6.01% a year ago.
Employment and job security are the crucial missing pieces for bolstering home buying.
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