Per NYP:

Mortgage demand has plummeted to a 25-year low as skyrocketing long-term rates continue to hammer the US housing market, a leading industry group said Wednesday.

Mortgage rates rose for the 10th straight week, with the average 30-year fixed rate contract hitting 7.16%, according to the Mortgage Bankers Association. Rates have reached their highest level since 2001, effectively crushing the volume of applications among financially wary Americans.

The volume of home purchase applications fell 2% for the week ending Oct. 21 and is down 42% year-over-year. Refinance applications increased slightly to 0.1% for the week, but declined 86% compared to the same week one year earlier.

Mortgage application activity is currently at its lowest level since 1997. The housing sector’s ongoing slump likely to get worse next year, according to Joel Kan, the MBA’s vice president and deputy chief economist.