"Surging Interest Rates Spark Plummet in Mortgage Demand"

The Mortgage Bankers Association reported a significant 10.6% drop in mortgage applications for the week ended Feb. 16, attributed to a surge in interest rates to 7.06%, the highest level in two months. Housing demand has stalled, with both home purchase and refinancing applications declining. The Federal Reserve's aggressive tightening campaign has cooled the interest rate-sensitive housing market, leading to limited inventory and dampened consumer demand.