U.S. mortgage rates last week topped 7% for the first time in a month, while home purchase applications fell by the most since mid-February.
The contract rate on a 30-year fixed mortgage rose to 7.01% in the week ended April 5, according to Mortgage Bankers Association data released Wednesday. That depressed the group's index of mortgage applications for home purchases, which slipped 4.7% to the lowest level in a month.
Home sales have shown momentum, with some economists suggesting buyers are now accustomed to higher mortgage rates.
Despite the drop in mortgage applications for home purchases, the association's overall index of applications managed to eke out a slight gain because of a jump in refinancing activity. That gauge rose to the highest level since early February.