The higher interest rates and lower mortgage demand are due to higher inflation.
Blame Congress and the presidents (Trump & Biden) who did not veto the spending bills.
Trump and Biden both signed spending bills totaling 4 Trillion. They juiced the money supply and caused this inflation. They made it so every knucklehead could go out and buy a boat and a big pickup truck to pull it with.
If they didn’t buy a boat they bought a side by side, motorcycle, RV, a second home, a convertible car, Hot tub, swimming pool, family room addition, a new deck or patio etc, etc.
Now that they can travel again so the price of hotels are at record highs. Summer vacation rentals are sold out over a year in advance.