"Mortgage Demand Plummets Amid Rising Interest Rates"

Mortgage demand has decreased as interest rates rose to 7.05%, the highest in a month. The Mortgage Bankers Association reported a 5.7% drop in mortgage applications for the week ending May 24. Home-purchase applications fell 1% from the previous week and are down 10% compared to last year. Refinance applications also dropped 14% from the previous week but are up 12% year-over-year. Economists predict that mortgage rates will stay elevated for most of 2024 until the Federal Reserve begins cutting rates, which is expected in September or November.