Though mortgage rates may have risen to their highest levels in four weeks, homebuying and refinance demand rose. This rise in applications comes ahead of a U.S. Federal Reserve decision on interest rates. This demand for refinancing and purchasing applications pushed the market-composite index (a measure of mortgage application volume) up.
According to Realtor.com, some buyers waded back into the market. The purchase index—which measures mortgage applications for the purchase of a home—rose 2.3% from last week.
On the other hand, a number of homeowners saw an opportunity to refinance. The refinance index rose 13.2%.
The average contract rate for the 30-year mortgage for homes sold for $726,200 or less was 7.31% for the week ending September 15. That’s up from 7.27% the week before, the MBA said.
The rate for jumbo loans, or the 30-year mortgage for homes sold for over $726,200, was 7.32%, up from 7.25% the previous week.