Homebuyers Hungry for Mortgages Despite Rising Rates
Mortgage demand from homebuyers crushed expectations after a less-than-stellar performance at the beginning of the week. CNBC reports applications for loans to purchase a home were up 13 percent from last year and 5 percent higher than the week prior, even as mortgage interest rates began to climb. Refinancing, which has been relatively stagnant compared to purchasing in the past month, also got a boost last week, surging 11 percent from the week prior and 80 percent higher annually. Though the housing market is still healing from the pandemic’s economic fallout and shelter-in-place orders, these are hopeful signs that the market is on its way to recovery.
Rising interest rates did nothing to deter an onslaught of mortgage demand from homebuyers.
Applications for loans to purchase a home rose 5% last week from the previous week and were 13% higher than a year ago, according to the Mortgage Bankers Association’s seasonally adjusted index.
Mortgage rates started the week near a record low but rose steadily throughout the week, with a spike on Friday, following the May employment report, which was much less dire than expected. The average for the week, however, showed only a small gain, with the 30-year fixed increasing to 3.38% from 3.37% for conforming loans with a 20% down payment. Points, including the origination fees, were unchanged at 0.30.