Mortgage rates rose for the third straight week last week, hitting the highest level since November.
As a result, mortgage application demand dropped 2.7% compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index.
As home prices rise along with interest rates, potential buyers' purchasing power are suffering a double whammy.
ARMs offer lower rates and can be fixed for up to 10 years, although they are considered riskier.
Mortgage rates have eased very slightly so far this week, but there hasn't been much economic data to influence them.
Persons:
Joel Kan, hasn't
Organizations:
Mortgage