Demand for mortgages increased in the past week even as mortgage rates rose to the highest in three months.
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Mortgage applications rose 0.6 percent in the past week, according to the Mortgage Bankers Association's Weekly Mortgage Application Survey.
Mortgage rates increased for the second straight week with the 30-year fixed rate climbing to 4.05 percent, the highest level since the end of July.
The seasonally adjusted purchase index rose 2 percent from last week, the highest level since the end of July.
"The 10-year Treasury rate rose slightly last week, as markets expected more progress toward a trade deal between the U.S. and China," said Joel Kan, Associate Vice President of Economic and Industry Forecasting. "Purchase applications continued to run at a stronger pace than last year, finishing a robust 10 percent higher than a year ago. Considering how much lower rates are compared to the end of 2018, purchase applications should continue showing solid year-over-year gains."
The refinancing index decreased 1 percent from the previous week and was 134 percent higher than the same week a year ago.
The refinance share of mortgage activity accounted for 58 percent of total applications, slipping from 58.5 percent in the prior week.