Mortgage demand jumped to an 8-month high this week despite rising rates, according to the weekly survey from the Mortgage Bankers Association.
- The Mortgage Marget Index rose to 218.2 for the week ending January 19th, up 3.7% from the previous week and the highest level since May 2023.
- Mortgage demand is down 17.3% from the same time last year.
Purchses Rise While Refis Fall. Purchases continued their upward momentum while refis, which are more rate sensitive, declined for the first time in three weeks.
- The Purchase index rose for the third straight week to an index of 174.3 for the week ending January 19th, up 7.5% from the previous week and the highest level since April 2023.
- The Refinance Index fell to an index of 471.2 for the week ending January 19th, down 7.0% from the prior week and the first decline in three weeks.
Rates Rise. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balance rose to 6.78% for the week ending January 19th, up 3 basis points from the prior week and in line with where the rate has been for the last 5 weeks.
- The average contract interest rate for 15-year fixed-rate mortgages increased 7 basis points to 6.31%.
Analysis. Joel Kan, MBA’s Deputy Chief Economist, noted that purchase demand continues to rise despite some light upticks in rates. “Mortgage rates increased slightly last week, but there continues to be an upward trend in purchase activity. Conventional and FHA purchase applications drove most of the increase last week as some buyers moved to act early this season,”