"Homebuyer Demand Plummets as Mortgage Rates Exceed 7%"

Mortgage rates above 7% have led to a fifth consecutive weekly drop in home-purchase applications, with the average rate for a 30-year loan at 7.04%. The Federal Reserve's aggressive tightening campaign has cooled the interest rate-sensitive housing market, with demand for both home purchases and refinancing declining. Economists expect rate cuts to begin in May or June, but high mortgage rates are also limiting inventory, leaving few options for eager buyers and resulting in a 34.3% decrease in available home supply compared to pre-pandemic levels.