US Home-Purchase Applications Drop to 28-Year Low as Rates Jump

  • Index declined more than 18%, most since 2015, to 147.1
  • Contract rate on 30-year mortgage rose to 6.62% last week
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A gauge of US home-purchase applications tumbled last week to the lowest level since 1995 as the highest mortgage rates in three months hammered a housing market struggling to stabilize.

The Mortgage Bankers Association’s index of mortgage applications to buy a home slumped more than 18% — the biggest drop since 2015 — to 147.1 in the week ended Feb. 17, data out Wednesday showed.