Applications for new mortgages rose despite higher mortgages rates
Demand for mortgages increased in the past week even as mortgage rates rose to the highest in three months.
Mortgage applications rose 0.6 percent in the past week, according to the Mortgage Bankers Association's Weekly Mortgage Application Survey.
Mortgage rates increased for the second straight week with the 30-year fixed rate climbing to 4.05 percent, the highest level since the end of July.
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The seasonally adjusted purchase index rose 2 percent from last week, the highest level since the end of July.
FILE - In this July 22, 2019, file photo a sale pending sign stands in front of a house in North Andover, Mass. (AP Photo/Elise Amendola, File)
"The 10-year Treasury rate rose slightly last week, as markets expected more progress toward a trade deal between the U.S. and China," said Joel Kan, Associate Vice President of Economic and Industry Forecasting. "Purchase applications continued to run at a stronger pace than last year, finishing a robust 10 percent higher than a year ago. Considering how much lower rates are compared to the end of 2018, purchase applications should continue showing solid year-over-year gains."
The refinancing index decreased 1 percent from the previous week and was 134 percent higher than the same week a year ago.
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The refinance share of mortgage activity accounted for 58 percent of total applications, slipping from 58.5 percent in the prior week.