"Rising Mortgage Rates Stifle Housing Demand and Purchase Volume"

Housing demand has stalled as mortgage rates approach 7%, with the Mortgage Bankers Association reporting a 3.7% increase in mortgage applications driven solely by refinancing. Purchase applications fell 1% compared to the previous week, with supply down 34.3% from pre-pandemic levels. The average rate on a 30-year loan rose to 6.8%, and the Federal Reserve's aggressive tightening campaign has cooled the interest rate-sensitive housing market. Sellers with low pre-pandemic mortgage rates are reluctant to sell, further limiting inventory for potential buyers.