Loan demand for home purchases and
refinancings was on the rise last week even though mortgage rates were
at some of its highest averages in more than a year.
Mortgage applications rose 16 percent for the week ending June 7, the
Mortgage Bankers Association reports in its weekly index, which covers
more than three-quarters of all U.S. residential mortgage applications.
Broken out, both mortgage applications for refinancings and applications
for home purchases rose 5 percent from the prior week.
A stronger economy is prompting interest rates to rise in recent
weeks. The average for the 30-year fixed-rate mortgage -- the most
popular among home buyers -- jumped to 4.15 percent, which is its
highest average since March 2012, the MBA reports. National averages for
15-year fixed-rate mortgages last week increased to 3.32 percent, the
highest level since April 2012.
Source: “U.S. Mortgage Applications Up 16% Last Week - MBA,” The Wall Street Journal (June 12, 2013)