American consumers are being hammered by inflation and interest rates that are surging.

According to the Mortgage Bankers Association, mortgage demand fell last week to a record low.

A seasonally adjusted index released by the Mortgage Bankers Association shows mortgage demand declined over 6% last week.

A 7% drop in mortgage applications for the week was compared to the same week last year.

Weekly interest rate movements have little impact on buyers, but rising rates have taken their toll overall.

Loans with a 20% downpayment had a contract interest rate increase to 5.82% from 5.74%, with points increasing to 0.65 from 0.59.

In comparison with last year, refinances were 80% lower than they were last week, which are highly rate sensitive.

The refinance share of total applications increased from 30.8% the previous week to 31.4% due to a decline in home buyer demand.

As bond market volatility increases, mortgage interest rates may change very soon.

Other central banks are taking similar measures against inflation, including the Federal Reserve's 75 basis point increase next week.