Mortgage applications have fallen to their lowest level since the beginning of 2020—prior to the pandemic. Both applications for refinancing's and home purchases fell last week, a decline that occurred even as mortgage rates fell, the Mortgage Bankers Association reports.

This marks the second consecutive week for a drop in mortgage demand, which is largely viewed as a gauge of future homebuying activity.

Low housing inventories and high home prices may be taking a toll on the market, economists say. Mortgage applications for home purchases dropped 1% for the week and are now 14% lower than a year ago, the MBA reported.

Source: “Mortgage Applications Sink to Their Lowest Level Since Before the Pandemic Hit,” CNBC (July 7, 2021)