Mortgage applications have risen for the second consecutive week, despite higher interest rates, according to data from the Mortgage Bankers Association. The volume of mortgage loan applications increased by 3.3% for the week ending April 12, even as the 30-year fixed-rate mortgage reached its highest level in months at 7.13%.
MBA Vice President Joel Kan explained that borrowers were still eager to apply for loans, possibly to secure a mortgage before rates climbed even higher. The strong economy and persistent inflation were factors motivating homebuyers to act quickly.
The majority of the increase in application volume came from purchases, which are still below last year’s levels by 10%. Refinancing applications also saw a slight uptick during this period.
Federal Reserve officials are considering keeping interest rates elevated for a longer period due to the stubborn inflation rates. Despite this, homebuyers were undeterred and continued to apply for mortgages at a higher rate.