Mortgage interest rates shot up dramatically this week to their highest rates in three years, taking its toll on loan demand, especially regarding refinances, said the Mortgage Bankers Association’s seasonally adjusted index report on March 23. The rapid increase is threatening to cool down the red-hot housing market. Refinance applications for home loans fell 14 percent from the previous week and were 54 percent lower than the same week back in 2021, as they are highly sensitive to sudden moves in weekly rates. As a result, the refinance share of mortgage activity went down to 44.8 percent of total applications from 48.4 percent the previous week. Total mortgage application volume fell 8.1 percent for the week ending March 18, 2022, down compared with the week before. Average contract interest rates for 30-year fixed-rate mortgages with conforming loan balances increased to 4.53 percent as of March 23 from 4.27 percent the week …