Mortgage Bankers Association chief economist Mike Fratantoni told FOX Business that the run-up in mortgage rates has slowed activity quite a bit in comparison with last year. Home purchase application volume is down about 15% from this time a year ago. The interest rate on a 30-year fixed mortgage is near the highest level in three years. Fratantoni noted that home purchase application volume is down about 15% from this time a year ago, while refinance applications fell even further because at this level of rates there's just not a lot of incentive for folks to refinance their existing loans. Our expectation is that this spike we've had is probably a little bit overdone, so we think rates are going to come down a bit but are still going to remain above where we would have forecast just a couple of months ago. Could high mortgage rates keep homebuyers out of the market through 2027? Yes, rates are expected to remain above 7% throughout 2027, creating affordability challenges for new buyers.