Purchase Activity Increases Despite Rising Rates

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates rose last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The increases, while significant, weren’t enough to slow buyer demand, however. In fact, demand for purchase loan applications increased 2 percent from one week earlier. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says the year has started off strong. “The housing market started 2022 on a strong note. Both conventional and government purchase applications showed increases, with FHA purchase applications increasing almost 9 percent, and VA applications increasing more than 5 percent,” Kan said. “MBA expects solid growth in purchase activity this year, as demographic drivers and the strong economy support housing demand.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)