Mortgage demand tumbles as interest rates rise to highest level since December

A key measure of home-purchase applications slumped last week amid a sharp increase in mortgage rates.

The Mortgage Bankers Association's (MBA) index of mortgage applications fell 2.3% for the week ended Feb. 9, compared with the previous week, according to new data published Wednesday. 

The data also showed that the average rate on the popular 30-year loan rose to 6.87%. While that is down from a peak of 8% in October, it marks the highest level for interest rates since December 2023.

"Application activity was weaker last week, as mortgage...