Mortgage applications dropped 10.9% last week as the 30-year fixed mortgage rate climbed to 6.3%, according to the Mortgage Bankers Association. The rate increase marked a significant jump that dampened overall borrowing demand across the housing market.
Despite the broader decline in mortgage activity, the purchase index managed to rise 1% week over week, suggesting homebuyers remained active even as borrowing costs increased. The divergence between total applications and purchase activity indicates refinancing demand likely bore the brunt of the rate-driven pullback.