Mortgage demand is now roughly half of what it was a year ago, as interest rates move even higher

Total mortgage application volume was 52.7% lower last week than the same week one year ago, according to the Mortgage Bankers Association’s seasonally adjusted index. Sharply rising interest rates are decimating refinance volume, and those rates, along with sky-high home prices and a shortage of houses for sale, are hitting demand from potential buyers.

Last week, the average contract interest rate for 30-year fixed-rate mortgages with…