Mortgage Demand Plummets as Rates Hit Highs and Affordability Crunches Buyers

• Mortgage applications dropped 10.6% last week as rates hit 7.06%, the highest since December • Housing demand has ground to a halt with purchase applications down 10% and 13% from last year • Refinance applications fell 11% last week and are flat compared to last year • Higher rates and home prices are straining affordability for buyers • Low inventory remains an issue with supply still down 34% from pre-pandemic levels