Mortgage rates leap, crimping demand

Fed's QE2 plan spurs fears of inflation

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Demand for purchase mortgages fell last week rates as interest rates surged, ending three consecutive weeks of gains in purchase loan applications, the Mortgage Bankers Association said in releasing the results of its Weekly Mortgage Applications Survey.

Demand for purchase loans for the week ending Nov. 12 was down a seasonally adjusted 5 percent compared to the week before, and requests for refinancings fell 16.5 percent to the lowest level since July.