Mortgage rates move higher after the Fed rate cut, causing loan demand to drop

Core Viewpoint - The Federal Reserve's recent interest rate cut has led to an increase in mortgage rates, resulting in a decline in demand for home loans and refinances. Group 1: Mortgage Rate Changes - The average contract interest rate for 30-year fixed-rate mortgages rose to 6.38% from 6.33%, with points increasing to 0.62 from 0.60 for loans with a 20% down payment [2] - Following the FOMC meeting, mortgage rates increased as investors interpreted the comments to indicate the nearing end of the rate-cutting cycle [3] Group 2: Mortgage Application Volume - Total mortgage application volume decreased by 3.8% last week compared to the previous week, according to the Mortgage Bankers Association's seasonally adjusted index [1] - Applications to refinance a home loan fell by 4% for the week, although they were 86% higher than the same week one year ago [4]