Despite mortgage rates reaching their lowest point since April 2023, weekly mortgage demand remains unchanged.

• The interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased from 6.50% to 6.44%.
• Refinance demand was 85% higher than the same week one year ago.
• The number of mortgage applications for purchasing a home increased by 1% in the current week, but was 9% lower compared to the corresponding week in the previous year.

Last week, mortgage rates decreased for the fourth consecutive week, yet neither existing homeowners nor potential buyers appeared notably affected.

The Mortgage Bankers Association's seasonally adjusted index showed that total mortgage application volume increased by only 0.5% last week compared to the previous week.

The interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.44% from 6.50%, with points decreasing to 0.54 from 0.60, including the origination fee, for loans with a 20% down payment. This was the lowest rate since April 2023, and rates have come down more than 80 basis points from a year ago.

Although the demand to refinance decreased by 0.1% from the previous week, it was still 85% higher than the same week one year ago. However, most borrowers have mortgages with rates below 6%, making it difficult to justify the expense of refinancing unless you can reduce your current rate by at least 75 basis points.

The number of mortgage applications for purchasing a home increased by 1% in the current week, but was 9% lower compared to the corresponding week in the previous year.

Despite a decrease in rates, purchase applications have not seen significant movement, as Joel Kan, MBA's vice president and deputy chief economist, observed in recent weeks. Prospective homebuyers are currently exhibiting patience as for-sale inventory increases and rates continue to lower.

No significant economic data has influenced mortgage rates at the beginning of this week, and the next major change may occur with the release of the monthly employment report at the end of next week.