Rising Interest Rates Pulling Down Mortgage Activity

Rising rates are pulling down mortgage activity and are a new threat to the housing market. The purchase index fell 0.3 percent in the September 19 week and is down a very heavy 16 percent year-on-year. The refinance index fell 7 percent in the latest week. Rates rose sharply for a second straight week, up 3 basis points for conforming loans ($417,000 or less) to an average 4.39 percent following the prior week's 9 basis point surge