Mortgage demand tumbles as interest rates rise to highest level since December

Mortgage demand slumps as interest rates march higher

A key measure of home-purchase applications slumped last week amid a sharp increase in mortgage rates.

The Mortgage Bankers Association’s (MBA) index of mortgage applications fell 2.3% for the week ended Feb. 9, compared with the previous week, according to new data published Wednesday.

The data also showed that the average rate on the popular 30-year loan rose to 6.87%. While that is down from a peak of 8% in October, it marks the highest level for interest rates since December 2023.

“Application activity was weaker last week, as mortgage rates moved higher across the board,” said Joel Kan, MBA’s deputy chief economist.


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