Mortgage Rates Rise, So Does Demand

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage loan applications rose 1.6 percent last week from the week before. The increase was driven by a 4 percent spike in refinance activity. The Purchase Index – which is an indicator of future home sales – was relatively flat, falling 1 percent from the previous week. The improvement in refinance demand pushed the refinance share of total mortgage activity up to 55 percent, its highest level since March. In addition to the increase in overall demand for loans, the survey also found mortgage rates up from the week before. In fact, mortgage rates rose across all loan categories, including 30-year loans with both conforming and jumbo balances, those backed by the Federal Housing Administration, and 15-year fixed rate loans. The results follow a recent pattern, where mortgage rates and demand for loans have both been relatively flat. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

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