U.S. mortgage demand drops to the lowest level in 27 years, despite drop in rates

The numbers: Mortgage rates fell over the latest week, but demand for mortgages fell to multidecade lows as U.S. home buyers stayed put.

Demand for mortgages fell to the lowest level since December 1996, while purchase applications fell to a 28-year low, despite rates falling 10 basis points over the last week. The 30-year was averaging at 7.21%.

Demand…