Mortgage Demand drops as interest rates hit a 2-month high.

• The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.57% from 6.48%
• Mortgage applications to purchase a home dropped 4.8% last week, compared with the previous week.
• Applications to refinance a home loan fell 8% for the week.
• Bottom Line- higher mortgage rates and a severe shortage of homes for sale are taking their toll on current mortgage demand.