Categories: Mortgage

Buyers rush through mortgage applications ahead of expected interest rate increase

Mortgage rates are moving higher, and that has some home shoppers rushing to locking in rates before they edge up even more, according to a report in CNBC.

Mortgage applications for refinancings and home purchases increased 4.5 percent last week compared to the previous week on a seasonally adjusted basis, the Mortgage Bankers Association reported Wednesday. It added that mortgage loan applications are also now 6.1 percent higher than the same week a year ago.

Broken out, applications to purchase a home surged 6 percent during the week and reached their highest level since April 2010, the MBA reports. Loan applications for home purchases are now 7 percent higher than the same week a year ago.

“A combination of being left on the sideline last summer due to a lack of inventory for sale and the prospect of slowly rising interest rates over the near term appears to have buyers in a hurry to start the spring buying season,” said Lynn Fisher, the MBA’s vice president of research and economics.

“Last week, 10-year Treasury yields increased by 10 basis points over the course of holiday-shortened week, due to a mixed bag of economic and political headlines,” Fisher added, referring to Martin Luther King Day.

Mortgage applications to refinance a home increased by one percent for the week. Typically, refinance applications move lower when interest rates rise, but that’s not happening now as borrowers are showing some concern for missing an opportunity to refinance at lower rates.

The 30-year fixed-rate mortgage averaged 4.36 percent during the week, its highest average since March, the MBA reports.

“The increases that we’ve seen so far have only gotten people off the couch and into the market,” Glenn Kelman, CEO of Redfin, told CNBC. “People are worrying that they need to hurry and buy a house now before rates go up further.”

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

Recent Posts

SEO: How to Optimize Your Real Estate Website

Every savvy real estate professional knows that the bulk of your marketing and brand-building efforts…

19 hours ago

Ask Brian: When You Marry Someone Do You Marry Their Debt?

Ask Brian is a weekly column by Real Estate Expert Brian Kline. If you have…

21 hours ago

What Do Real Estate Attorneys Do For Sellers?

When an attorney for real estate represents a seller, they could be involved in drafting…

2 days ago

ERA CENTRAL GRAPHIC ARTIST DESIGNS LOGO FOR TOYS FOR TOTS 75TH ANNIVERSARY

ERA Central Realty Group announced today that in-house graphic artist Suzi Kelly has been chosen…

2 days ago

LGBTQ+ REAL ESTATE ALLIANCE TO HOST FIRST IN-PERSON CONFERENCE IN LAS VEGAS

The LGBTQ+ Real Estate Alliance will hold Experience: The Alliance, its first national in-person conference…

2 days ago

The real estate pendulum swings again

Galileo was inside the Pisa cathedral in Tuscany, Italy in the early 17th century when…

2 days ago