Purchase applications remained virtually flat (-0.2%), reflecting continued hesitancy among homebuyers who await further rate decreases and more available listings. Refinance activity also declined 2% from the previous week.
Read more: Housing market slowdown hits sellers
“Lower rates should help to free up additional inventory as the lock-in effect is reduced, but we expect that will only take place gradually, as we forecast that rates will move toward 6% by the end of the year,” said Kan. “Similarly, with rates remaining elevated, there is very little incentive right now for rate/term refinances.”
The refinance share of total mortgage applications dropped to 30.8%, while the adjustable-rate mortgage (ARM) share decreased to 7%. Government-backed loans (FHA, VA, USDA) saw minimal changes in their share of applications.
Read next: How is the spring housing market shaping up?
Source: mpamag.com