Rising interest rates reduce mortgage demand in America by more than 40% year on year

US mortgage applications fell more than 6% last week compared to the previous week, according to the seasonally adjusted Mortgage Bankers Association index, with interest rates hiked by the US Federal Reserve.

The trading volume is down about 40% compared to the same week a year ago.

Higher interest rates lead to a downturn in the mortgage market, as few homeowners can now benefit from refinancing.