Borrowers were undeterred by the highest interest rates in five months as mortgage applications for home purchases surged 12 percent in the latest week. Home purchase applications are now 19 percent higher than one year ago, the Mortgage Bankers Association reports.
“This was despite the fact that mortgage rates reached their highest level since July,” says Michael Fratantoni, chief economist for the MBA.
Applications for refinancings were also up for the week ending Nov. 13, with refinance applications rising 2 percent 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.”
Check out last week’s MBA report.
Overall, MBA’s index measuring mortgage applications for refinancings and home purchases rose 6.2 percent on a seasonally adjusted basis last week.
MBA reports that the average rate on the 30-year fixed-rate mortgage was 4.18 percent last week, up from 4.12 percent the prior week.
Source: “Mortgage Applications Rise 6.2% Despite Higher Rates,” CNBC (Nov. 18, 2015)