Mortgage demand climbed to its highest level in a month, according to the latest data from the Mortgage Bankers Association, defying a modest uptick in borrowing costs.
- For the week ending May 9, the MBA’s total mortgage application index rose 1.1% to 251.2 — the strongest reading since April 11.
Breaking It Down: The increase was fueled by a 2.3% rise in purchase applications, marking the biggest weekly gain since early April.
- While refinancing activity edged slightly lower, down 0.5% from the previous week, it remained near its second-highest level in the last month, suggesting that some homeowners are still seeing opportunities despite higher rates.
Rates: The rebound in demand came even as mortgage rates nudged higher. The average contract interest rate for 30-year fixed-rate mortgages rose to 6.86%, up two basis points from the prior week. That modest rise, however, didn’t appear to deter buyers returning to the market following weeks of subdued activity.
Bottom Line: Mortgage demand continues to slowly climb as buyers get used to higher rates.
