Recent reports indicate a significant drop in mortgage demand, with applications decreasing by over 10% for the second consecutive week as rates reach their highest levels since October. Current mortgage rates have surged, peaking at 6.45% for 30-year fixed loans, amidst rising inflationary pressures linked to ongoing conflicts in the Middle East. Analysts highlight that without intervention from entities like Freddie Mac and Fannie Mae, the situation could be even worse. The recent spike in rates is also affecting refinance activities and home sales, intensifying concerns about affordability in the housing market.