Mortgage Rates Drop to Two-Month Lows

Last week, mortgage rates dropped to two-month lows to 7.08% on 30-year fixed-rate mortgages from 7.18%, the most popular mortgage loan for American home buyers.

Applications to refinance a home loan increased by 5%.

However, the mortgage interest rate decrease did not yield a stronger housing market as buyers are having difficulty buying into today’s inflated housing market.

Mortgage demand flattened. Applications to purchase homes were 14% lower on an annual basis.

Inventory for homes is still tight as most owners are locked into significantly lower mortgage rates than the market offers today.