Borrowers were undeterred by the highest interest rates in 5 months as mortgage applications for home purchasers surged 12% in the latest week. The Mortgage Bankers Association (MBA), reports that home purchase applications are now 19% higher than they were at this time last year.
“This was despite the fact that mortgage rates reached their highest level since July,” says Michael Frantantoni, chief economist for the MBA.
Applications for refinancing were also up for the week ending November 13, with refinance applications rising 2% week-to-week. “What we are seeing is refinances increasing as we anticipate interest rates going up. It’s a great accelerator and motivator for many people,” says Jonathan Corr, CEO of Ellie Mae. “This month we saw the third consecutive month of refinance volume increases.”
Overall, MBA’s index measuring mortgage applications for refinancings and home purchases rose 6.2% on a seasonally adjusted basis last week.
MBA reports that the average rate on the 30-year fixed-rate mortgage was 4.18% last week, up from 4.12% the week before.