Mortgage demand fell last week even as rates declined slightly

Mortgage rates fell slightly last week, but not enough to fuel any kind of recovery in consumer demand for home loans.

Total mortgage application volume fell 2% from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Demand stands at the lowest level since 2000. It hit a similar low in July.

Applications for a mortgage to purchase a home dropped 1% for the week and were 18% lower than the same week one year ago. Potential homebuyers are not only grappling with higher interest rates but with inflation in the overall…