Mortgage applications rose last week even though rates have recently increased significantly, according to CNBC.
Applications increase: Mortgage applications to purchase a home increased 8% last week compared with the previous week. Applications were down 10% compared to the same week one year ago.
Rates rise: Last week, mortgage rates surged to the highest level since 2008 and made their biggest one-week jump in 13 years. Experts suggest that the jump in rates may have spurred the increase in applications, with consumers seeking to get in before the rates could go even higher.
Refinancing falls: The number of applications to refinance a home fell 3% last week and was 77% lower than it was a year ago.
Buyer demand grows: “Buyer demand may be increasing because the supply of homes for sale is finally growing. Active inventory nationwide is now up 17% year over year according to Realtor.com. Homes are now selling faster than they were a year ago.”