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Higher mortgage rates have zapped mortgage demand, as buyers are having second thoughts about purchasing homes.\u00a0<\/p>\n
Mortgage applications<\/a> for home purchases dropped 6% for the week ending February 24 from the previous week, according to the Mortgage Bankers Association<\/strong><\/a>\u2019s seasonally adjusted index. Mortgage demand was also 44% lower than the same week a year ago, and is now sitting at a 28-year low.<\/p>\n \u201cAfter a brief revival in application activity in January, when mortgage rates dropped down to 6.2%, there has now been three straight weeks of declines in applications, as mortgage rates have jumped 50 basis points over the past month,\u201d said Joel Kan, MBA\u2019s vice president and deputy chief economist.<\/p>\n Data on inflation<\/a>, employment <\/a>and economic activity signaled that inflation may not be cooling as quickly as anticipated, putting upward pressure on rates, Kan explained.\u00a0<\/p>\n The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances that are $726,200 or less increased to 6.71% from the previous week’s 6.62%. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances that are greater than $726,200 remained at 6.44% during the same period.<\/p>\n At HousingWire<\/strong>\u2018s Rate Center<\/a>, the Optimal Blue data showed rates at 6.681% on Tuesday, up from last week\u2019s 6.638%. At Mortgage Daily News<\/strong><\/a>, rates were even higher at 6.85%.<\/p>\n