What's Happening
Mortgage demand dropped more than 10% last week as rates surged to their highest level since October, crushing affordability for homebuyers already priced out of the market.
Market Impact
Housing starts and builder stocks face headwinds; mortgage REITs and servicers see refinancing pipelines evaporate. Consumer spending weakness ripples through construction and retail tied to home purchases.
Broader Implications
Persistent rate elevation signals Fed policy remains restrictive despite recession fears, constraining household wealth formation and economic growth momentum.