(Left) Kevin Dietsch/Getty Images, (Right) Getty Images
- The 30-year fixed mortgage rate spiked to 6.87% in the last week, the highest level in two months.
- Elevated borrowing costs for prospective buyers sent mortgage applications lower.
- A hot inflation report for January is likely to keep borrowing costs elevated as the Fed stays hawkish.
Mortgage rates surged to a two-month high in the last week, sending mortgage applications tumbling.
The 30-year fixed mortgage rate jumped to 6.87% in the week ending February 9th, marking the highest level since early December 2023's average of 6.43%, according to Mortgage Bankers Association data released on Wednesday.
Meanwhile, elevated borrowing costs weighed on mortgage applications to push total volume down 2.3% from the previous week, with the share of refinancing activity dropping to 34.2% from the previous week's 35.4%.