Mortgage activity finally responded to lower interest rates but just as rates began to rise again.
Total mortgage applications surged 10.3 percent on week on a seasonally adjusted basis, according to a weekly survey from the Mortgage Bankers Association (MBA).
The rise comes as the average contract interest rate for 30-year fixed rate mortgages with conforming loan balances ($417,000 and under) increased to 4.34 percent from 4.26 percent the previous week. Rates had been falling steadily but didn't spur much activity. This suggests a time lag to act which may have cost borrowers extra money.
"We could have held out some hope that markets were just digesting last week's big events and that rates might still snap back lower," wrote Matthew Graham of Mortgage News Daily in an analysis of the latest rate moves. "Today builds a case against any quick moves lower, and begins to make last week's only positive day for rates look like an outlier in an otherwise determined trend higher."