Mortgage demand fell to its lowest point since 1992, despite a decrease in interest rates caused by the coronavirus pandemic. As the economic fallout from the virus leaves many Americans without jobs, mortgage applications decreased by a seasonally adjusted 30.2% in the week ended July 3 compared to the same week a year earlier, according to the Mortgage Bankers Association. Although many lenders are offering low interest rates, many people are hesitant to take out a loan or refinance an existing one because of economic uncertainty. While mortgage rates have dropped, consumers are stabilizing their financial situations in the current environment by holding off on large purchases such as homes.
Mortgage demand falls to 27-year low despite drop in interest rates
