The Mortgage Bankers Association (MBA) has reported a 7.4% increase in the number of applicants for mortgage loans last week, despite the fact that mortgage interest rates are on the rise.
According to the MBA’s latest report, the number of people applying for refinance loans increased by 9% last week, although it remains down 76% compared to the same period last year. Meanwhile, the number of applicants for home equity loans rose by 7%, but was down 42% year-over-year.
The MBA’s report also revealed that the average interest rate for 30-year fixed-rate mortgages with conforming loan balances $726,200 or less rose to 6.79% from 6.71% the previous week. This increase in interest rates has not deterred prospective homebuyers and homeowners from seeking out mortgage loans.
The rise in the number of mortgage loan applicants is a positive sign for the US housing market, which has been experiencing a surge in demand amid low inventory levels and rising prices. The pandemic has also prompted many people to reassess their housing needs, leading to increased interest in homeownership.
Despite the rise in interest rates, the MBA’s report suggests that many Americans still see the value in investing in a home. However, rising interest rates could potentially slow down the pace of homebuying activity in the coming months.
Overall, the MBA’s report highlights the resilience of the US housing market and the continued interest in mortgage loans, despite the challenges posed by rising interest rates and low inventory levels.