According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage applications moved higher last week from one week earlier. Gains were seen in both purchase and refinance activity, with overall demand up 3.7 percent week-over-week. The improvement came even as average mortgage rates rose. In fact, rates were up from the week before for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Joel Kan, MBA’s vice president and deputy chief economist, says rates moved higher because of Treasury yields. “Although incoming data points to a slowdown in the U.S. economy, markets continue to expect that the Fed will raise short-term rates at its next meeting, which have pushed Treasury yields somewhat higher,” Kan said. “As a result of the higher yields, mortgage rates increased for the second straight week to their highest level in over a month.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)