Mortgage demand from homebuyers pulled back sharply

The stunning surge in home buying, brought on by the coronavirus pandemic, may finally be easing up. Mortgage rates are hovering near record lows, but buyers are experiencing sticker shock in today’s overheated housing market.

Mortgage applications to purchase a home fell 0.8% in the two weeks ended Jan. 1, compared with the second week of December, according to the Mortgage Bankers Association, whose seasonally adjusted index took into account the Christmas and New Year holidays.

More telling was that purchase volume was just 3% higher than the same period a year…