Mortgage demand rises 1.9% as homebuyers return despite higher rates

According to CNBC, total mortgage demand rose 1.9% last week as homebuyers returned to the market, while the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.69% from 6.65%, the highest since last August. Refinance demand fell 2% on the week, and applications for a mortgage to purchase a home climbed 6% and were 0.2% higher than a year earlier. The Mortgage Bankers Association said growing home inventory in many markets is supporting more purchase activity, while inflation data and higher oil prices are likely to keep mortgage rates elevated. A separate Mortgage News Daily survey showed rates moved even higher at the start of this week, matching their mid-May high.