Higher Rates Cause a 9% Plunge in Mortgage Applications

Weekly mortgage applications dropped by 9.2% from the previous week, reported the Mortgage Bankers Association. The drop comes against a backdrop of mortgage rates, which nearly hit 4% after the presidential election. The refinance component of mortgage applications fell another 11% last week from the previous week, while applications for new purchases fell 6% for the week and are now at the lowest level since January.

Despite the recent weekly drop, all mortgage activity is still higher than it was at the same time last year.

After several years of steady growth, many experts believe the economy will heat-up, driving inflation rates higher.