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Homeowners aren’t interested in new mortgages right now.

Recently, American homeowners have been applying for fewer mortgages than usual. Ongoing concerns of recession and economic slowdown have made the public reluctant to make any major money moves. As a result of this, mortgage rates have been on the decline in the last few weeks, dropping 24 basis points in the last two weeks. Despite these drops, though, homeowners still aren’t biting for new mortgages, with mortgage demand overall down by 5%.

“Mortgage rates decreased for the second week in a row, as growing concerns over an economic slowdown and increased recessionary risks kept Treasury yields lower,” said Joel Kan, associate vice president of economic and industry forecasting for the Mortgage Bankers Association.

“Rates are still significantly higher than they were a year ago, which is why applications for home purchases and refinances remain depressed. Purchase activity is hamstrung by ongoing affordability challenges and low inventory,” Kan added.

Mortgage applications fall for second straight week https://t.co/872Po2gvhh pic.twitter.com/r0B78ignaY

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According to the most recent reports from Realtor.com, the number of for-sale houses has recovery somewhat since its major drop-off several years ago. Even so, compared to this time in 2019, there are 53.2% fewer houses on the market.

“Our June data shows the inventory recovery accelerated, posting the second straight month of active listings growth in nearly three years. We expect these improvements to continue,” said Danielle Hale, chief economist at Realtor.com, who added that “The typical buyer has yet to see meaningful relief from quickly selling homes and record-high asking prices.”