Mortgage rates hit lowest level in nearly 4 years, but homebuyers are still stuck on the sidelines

by anastasiakaufman-chime-me

Published Wed, Feb 25 20267:00 AM ESTUpdated Wed, Feb 25 202610:14 AM EST

By: Diana Olick

Prospective buyers arrive during an open house at a home in Seattle, Washington, US, on Sunday, Jan. 18, 2026. With the crucial spring homebuying season ahead, real estate agents finally have something fresh to sell: the lowest mortgage rates in three years. Photographer: David Ryder/Bloomberg via Getty Images
Prospective buyers arrive during an open house at a home in Seattle, Washington, US, on Sunday, Jan. 18, 2026. David Ryder | Bloomberg | Getty Images

Mortgage rates dropped sharply last week, and while that helped to prolong gains in refinancing, homebuyer demand seemed unimpressed.

Total mortgage application volume was essentially flat, rising just 0.4% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. LEARN MORE…

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