US mortgage rates dropped slightly last week, falling to 6.93% for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less). However, this decrease in rates was not enough to boost demand, as total mortgage application volume fell 6.6% for the week.
Applications to refinance a home loan declined 7% for the week but were 39% higher than the same week one year ago. This significant drop is largely due to the low overall volume of refinancing, with most borrowers holding mortgages at lower interest rates.
Conversely, applications for buying a home fell 6% for the week but remained 7% higher year over year. Housing affordability and economic uncertainty are key factors contributing to this trend, as buyers remain cautious.
Despite a slight increase in mortgage rates initially this week, experts attribute this volatility to holiday-shortened weeks and market fluctuations. With housing affordability continuing to be a major concern, it remains to be seen whether these rate changes will ultimately boost demand in the coming months.
Source: https://www.cnbc.com/2025/02/19/weekly-mortgage-demand-drops-6percent-as-homebuyers-remain-on-the-fence.html