Consumers lock in mortgage rates amid growing concerns
Mortgage applications for refinancings and home purchases surged 4.1 percent last week on a seasonally adjusted basis, even as interest rates rose, according to the Mortgage Bankers Association. Volume is now up 5.6 percent over a year ago.
More consumers are growing concerned that the long run of record low rates may be coming to an end. As such, they’re rushing to lock in rates before any more upticks.
Applications to purchase a home increased 3 percent last week and are now 7 percent higher than the same week a year ago. Refinance applications rose 4 percent last week. Typically, refinance applications drop when interest rates rise so applications diverted from normal patterns last week.