Falling Mortgage Rates Aren't Moving Needle For Buyers...Yet

• 11:13 AM EST

by UrbanTurf Staff

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Mortgage rates dropped to their lowest level in two years last week, but don't tell that to prospective homebuyers — they didn't seem to care much.

Total mortgage application volume barely budged, according to the Mortgage Bankers Association on Wednesday, rising just 0.4% week-over-week. The muted response came even as the average interest rate for 30-year mortgages fell to 6.09%, the lowest rate since September 2022.

Purchase applications fell 5% for the week, though they remain 12% higher than the same time last year. The disconnect isn't entirely surprising. While lower rates have chipped away at affordability concerns, home prices are still running slightly above year-ago levels, and economic uncertainty continues to make buyers hesitant to pull the trigger.

However, on the refinancing side, the narrative is brighter. Refi applications climbed 4% week-over-week and are up a staggering 150% compared to the same week in 2025, when rates were nearly 80 basis points higher. That year-over-year figure, while eye-catching, deserves some context — refinancing activity was exceptionally subdued at this point last year, making the comparison something of a low bar to clear.

This article originally published at https://dc.urbanturf.com/articles/blog/falling_mortgage_rates_arent_moving_needle_for_buyersyet/24356.