Mortgage applications fall to the lowest pace in 25 years, as interest rates nearing 7% spook buyers

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Mortgage applications fall to the lowest pace in 25 years, as interest rates nearing 7% spook buyers
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A surge in mortgage rates, and evacuations due to Hurricane Ian, both seriously dampened demand for home purchases and refinances. Mortgage application activity — which includes purchases and refinances — has dropped to the slowest pace since 1997.

The numbers: A surge in mortgage rates, and evacuations due to Hurricane Ian, both seriously dampened demand for home purchases and refinances.

The big picture: Mortgage application activity — which includes purchases and refinances — has dropped to the slowest pace since 1997, the MBA said. “Applications in Florida fell 31%, compared to 14% overall, on a non-seasonally adjusted basis,” Joel Kan, associate vice president of economic and industry forecasting at the MBA, said in a statement.The purchase index, which measures mortgage applications for the purchase of a home, fell by 12.6% from the previous week.

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