US mortgage rates surged to the highest level since early November last week, stifling demand for home purchases and refinancings.
The contract rate on a 30-year fixed mortgage increased 22 basis points to 6.91% in the week ended May 26, according to Mortgage Bankers Association data out Wednesday.
The index for home purchases fell to the lowest level since early March. Refinancing activity was the weakest since late February, the MBA data showed.
The survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.
