"Homebuying Demand Plummets as Mortgage Rates Surge Past 7%"

Mortgage demand took a significant hit as interest rates crossed back over 7%, with total application volume plunging 10.6% compared to the previous week. The average contract interest rate for 30-year fixed-rate mortgages increased to 7.06%, leading to an 11% drop in applications to refinance a home loan and a 10% decrease in applications for mortgage to purchase a home. Potential homebuyers are sensitive to these rate changes, as affordability is strained with both higher rates and higher home values in this supply-constrained market.