Homebuyers appear to be getting used to the new normal of higher mortgage rates, even the highest in over a month. Buyer demand for mortgages helped to push total mortgage application volume up 1.7% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, increased to 6.46% from 6.45%, with points decreasing to 0.63 from 0.66, including the origination fee, for loans with a 20% down payment.
Applications for a mortgage to purchase a home rose 4% for the week and were 7% higher than the same week one year ago. Buyer demand stalled at the start of the spring housing market, which coincided with the start of the war with Iran.
“Potential homebuyers shrugged off the current economic and mortgage rate uncertainties and returned to the market,” said Joel Kan, an MBA economist in a release.
During a conference call on April home sales this week, the National Association of Realtors’ chief economist, Lawrence Yun, said agents were reporting a surge in buyer demand in just the last few weeks.
