After watching interest rates rise for nearly two months, homebuyers and homeowners took baby steps back into the mortgage market.
Total mortgage application volume rose 2.5 percent, seasonally adjusted, last week versus the previous week, according to the Mortgage Bankers Association. Volume, however, is still nearly 11 percent lower than the same week one year ago.
After 10 weeks of declines, applications to refinance a home loan gained a little steam, rising 3 percent for the week but still down double digits from a year ago. Despite rising rates, thousands of borrowers can still benefit from a refinance. Some have been sidelined by negative home equity, which disqualifies them from refinancing. Fast-rising home prices, however, are bringing more and more borrowers above water and finally allowing them to take advantage of what are still relatively low rates.