The surge in mortgage demand from homebuyers over the past two months appears to be waning, even as mortgage rates continue to drop.
Mortgage applications to purchase a home fell for the second straight week, down 1% from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Purchase volume was still 15% higher than one year ago, but that annual comparison is now shrinking.
“The weakening in activity is potentially a signal that pent-up demand is starting to wane and that low housing supply is limiting prospective buyers’ options,” said Joel Kan, an MBA economist. “The average purchase application loan size increased to a record high in our survey…