Mortgage demand tumbles as rates drive down housing market

Mortgage demand tumbled again last week amid stubbornly high mortgage rates, which have depressed the housing market and caused pain for homebuyers.

Mortgage loan application volume decreased by 0.7% last week on a seasonally adjusted basis, according to a report Wednesday from the Mortgage Bankers Association.

The volume of refinances dropped by 2% during that same time, according to the group’s weekly survey, and has plunged 9% from a year ago.

The declining mortgage demand comes even as mortgage rates moderated a bit last week, which typically boosts demand. As of Wednesday, the average rate...