US Mortgage Rates Continue to Drop for Second Consecutive Week

Mortgage rates have declined for the second consecutive week, but the housing market remains sluggish due to an inventory shortage and affordability concerns. The volume of mortgage applications to purchase a home increased by 5% from the previous week, but overall purchase activity was still 32% lower than a year earlier. The three factors slowing down the market this spring are the recent banking turmoil, continued elevated mortgage rates, and a dearth of homes for sale. Despite conditions pointing to a seller's market, elevated mortgage rates are convincing many homeowners to forgo selling this spring, worsening inventory woes.