Mortgage demand drops after interest rates jump to the highest level since February

Mortgage rates jumped last week, leading to a 5.1% drop in applications as investors worry about inflation and rising deficits. The average rate for 30-year fixed mortgages rose to 6.92%, up from 6.86%, with points increasing slightly. Meanwhile, homebuyers are seeing fewer listings and higher rates cooling the spring market. Refinance applications also fell, though they were still up compared to the same week a year ago. With rates now nearly unchanged since two years ago, few borrowers see benefits in refinancing.