According to the Mortgage Bankers Association, total mortgage applications tumbled to the lowest level in 27 years, down by 13.2% on a seasonally adjusted basis. Refinance applications were down by 16.3% week over week, and purchase activity fell by 12.2%.

“Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market. Moreover, if rates continue to decline, borrowers who purchased in the last year will have opportunities to refinance into lower rates.”

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