Drop in mortgage rates fails to boost activity

Falling Treasury yields have pushed down the 30-year mortgage interest rate over the past few weeks. It now sits at its lowest level since early-November. But that drop in interest rates has not led to a rise housing market activity. Indeed, both new and existing home sales retreated in July. A lack of inventory is behind the decline in sales, with the months’ supply of existing single-family homes at its joint-lowest since records began in 1982.