As rates rise, the number of loan applications falls

Applications for U.S. home loans dropped to their lowest level in almost a year and a half, as rising rates cut into demand.

The Mortgage Bankers Assn. of America said applications fell 8.6% in the week ending Nov. 7, to its lowest level since the week ending June 14, 2002. Applications to refinance and for mortgages to buy homes fell, with refinancings down almost 80% from their all-time peak in the summer when rates hit a 45-year low.

Meanwhile, rates on 30-year fixed-rate mortgages edged higher for the second straight week, rising above 6%, Freddie Mac said.