"Rising Mortgage Rates Dampen Housing Market Activity"

Mortgage rates have surged higher, causing a 2.3% drop in total mortgage application volume last week, with the average contract interest rate for 30-year fixed-rate mortgages reaching 6.87%, the highest since early December 2023. Refinance applications fell 2% but were 12% higher than a year ago, while applications for home purchases dropped 3% and were 12% lower than a year ago. Elevated rates and low housing inventory are adding to affordability challenges, leading to a drop in pending home sales and subdued purchase applications. The recent government report on inflation has further pushed mortgage rates higher, with the average rate on the 30-year fixed hitting 7.08%.