Demand for Mortgages Rises, , Despite Increasing Rates.
Last week, mortgage rates continued
to climb higher in the United States.
NBC reports that the increase has not
impacted mortgage demand, as buyers
continue to seek newly-built homes.
According to the Mortgage Bankers Association's
seasonally adjusted index, total volume for mortgage
applications rose 3% compared to the week prior.
Year over year, total applications are still down 21%.
However, NBC reports that applications have
increased for three consecutive weeks to reach
the highest level since May, despite rising rates.
New home sales have been driving purchase
activity in recent months as buyers look for
options beyond the existing-home market, Joel Kan, MBA’s vice president and deputy chief economist, via NBC.
Existing-home sales continued to be held
back by a lack of for-sale inventory as
many potential sellers are holding on
to their lower-rate mortgages, Joel Kan, MBA’s vice president and deputy chief economist, via NBC.
In May, sales of newly-built homes
rose by 12% compared to April and
were 20% higher than a year before.
Meanwhile, applications to refinance
a home loan increased by 3% for the week
but still came in 32% lower than in 2022.