A recent surge in mortgage rates is weighing heavily on homebuyers, causing a sharp and sustained drop in mortgage applications across the U.S.

This downturn marks the fourth consecutive weekly decline, signaling growing pressure from elevated borrowing costs.

Mortgage Applications Plummet for Fourth Straight Week

For the week ending Oct. 18, mortgage applications in the U.S. tumbled by 6.7%, extending a 17% plunge from the previous week, according to data shared Wednesday by the Mortgage Bankers Association.

This represents the fourth straight week of contraction in mortgage demand, as the recent uptick in interest rates to two-month highs has increasingly...