Higher interest rates are squeezing homebuyers as mortgage applications hit a two-year low, signaling growing affordability challenges in the housing market. The sharp decline reflects how rising borrowing costs are deterring potential buyers, with lenders reporting fewer inquiries across the board. Industry analysts warn that sustained high rates could further tighten an already competitive market. For those eyeing homeownership, the trend underscores the financial hurdles ahead.
Rising borrowing costs have pushed mortgage applications to their lowest level since February 2025.
