Mortgage Applications Drop as Rates Hit Near 7%, Weighing on Housing Market

• Mortgage application index fell 2.3% last week as rates rose to 6.87%, highest since December • Purchase applications dropped 3% and are down 12% from last year • Refinance applications fell 2% but are up 12% from last year • Higher rates adding to affordability challenges and low inventory • Aggressive Fed rate hikes have cooled housing market by dampening demand and limiting inventory