Home loan borrowers seem undeterred by the highest interest rates in five months, or perhaps provoked by them. This is especially evident among homebuyers.
Mortgage application volume increased 6.2 percent last week from a week earlier, according to a survey by the Mortgage Bankers Association. The seasonally adjusted reading includes an adjustment for the Veterans Day holiday.
Applications to refinance loans increased 2 percent from the previous week, seasonally adjusted, and applications to purchase a home jumped 12 percent. Purchase applications are now 19 percent higher than a year ago, as mortgage-dependent, owner-occupant buyers replace cash-heavy investors.