Despite Higher Interest Rates, Mortgage Applications Increase by 3.3% due to Homebuyers’ Determination

Mortgage loan applications increased by 3.3% for the week ending April 12, despite higher interest rates, according to data from the Mortgage Bankers Association. The volume of mortgage loan applications was driven by purchases, which saw a slight uptick during this period.

MBA Vice President Joel Kan mentioned that borrowers were still eager to apply for loans, possibly to secure a mortgage before rates climbed even higher. The strong economy and persistent inflation were factors motivating homebuyers to act quickly. Refinancing applications also saw a slight uptick during this period.

Federal Reserve officials are considering keeping interest rates elevated for a longer period due to the stubborn inflation rates. Despite this, homebuyers were undeterred and continued to apply for mortgages at a higher rate, indicating their determination to secure homes despite rising interest rates.