US Mortgage Rates Hit 2-Month Lows Despite Slumping Demand

Despite a 7-week low in mortgage rates, mortgage demand fell last week, with purchase applications down 4% compared to the previous week and down 35% YoY for the same period, according to data from the Mortgage Bankers Association. A lack of available inventory is the primary reason for the dwindling demand during what is normally a busy time of the year in the residential real estate sector. US home prices have begun to fall in response to the spike in mortgage rates over the last year, with overall US home prices falling YoY for the first time since 2012.