(MENAFN) Despite mortgage rates reaching their highest level in four months, US mortgage applications saw an increase last week, as indicated by a report released Wednesday by the Mortgage Bankers Association (MBA).
The market composite index, which serves as a gauge of mortgage loan application volume, rose by 3.3 percent on a seasonally adjusted basis for the week ending April 12. On an unadjusted basis, the index recorded a 4 percent increase compared to the previous week. This uptick in mortgage applications suggests continued activity in the housing market, despite the upward trend in mortgage rates.
"Rates increased for the second consecutive week, driven by incoming data indicating that the economy remains strong and inflation is proving tougher to bring down," Joel Kan, who serves as the vice president and deputy chief economist at the MBA, remarked on the findings in a statement.
Last week, the average contract interest rate for a 30-year fixed mortgage climbed to 7.13 percent, marking its highest level since December, compared to 7.01 percent the prior week.
Similarly, the average contract interest rate for 15-year fixed-rate mortgages increased to 6.64 percent from 6.46 percent.
"Despite these higher rates, application activity picked up, possibly as some borrowers decided to act in case rates continue to rise," Kan declared.
The MBA survey encompasses over 75 percent of US retail residential mortgage applications.
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