Mortgage and Student Loan Demand Decline Despite Steady Rates.

Despite a drop in mortgage rates, demand for mortgages fell for the fourth consecutive week, with total mortgage application volume declining by 1.4% compared to the previous week. Applications to refinance a home loan fell by 1%, while applications for a mortgage to purchase a home slipped by 2%. The ongoing lack of for-sale inventory in the market and reduced purchasing power from higher rates are constraining purchase activity, while there continues to be very little rate incentive for refinance borrowers. The next major read on the economy to influence mortgage rates will be next week's monthly inflation report from the government.