"Forecasting the Impact of Rising Mortgage Rates on Home Demand and Refinancing Trends"

US mortgage rates surpassed 7% for the first time in a month, leading to a significant drop in home purchase applications. Despite this, overall mortgage applications saw a slight increase due to a rise in refinancing activity. Economists believe that people are adjusting to higher mortgage rates, which have doubled since early 2022. The Federal Reserve has not yet lowered interest rates to combat inflation, and policymakers will assess consumer prices in upcoming data.