Mortgage Rates Plummet Below 7% as Demand Soars

Mortgage rates have dropped below 7% for the first time in months, leading to an increase in purchase applications. However, the low inventory of homes on the market is keeping prices elevated, making it difficult for prospective buyers. The Mortgage Bankers Association reported a six-week consecutive increase in mortgage applications, but purchase volume remains lower than last year. Many homeowners with lower rates are choosing to stay put, contributing to the inventory shortage. Economists predict that the affordability crisis will persist due to the disparity between current market rates and lower rates enjoyed by existing homeowners.