Mortgage Rates Surge to 7% Range as Fed Signals No Rate Cuts, Applications Plummet.

Mortgage rates have spiked to 7% range, the highest since November, as investors pull out of the housing market and mortgage applications plunge to the third-lowest volume since 1995. The Federal Reserve is unlikely to cut rates anytime soon, and inflation is still running too high. The high mortgage rates have given rise to the theory that investors would swoop in and pick up the pieces left behind by potential buyers staying out of the market, but that's not happening. With the 7% mortgages now hammering the end of spring selling season, home sales going into the summer could turn out to be dismal.