Mortgage applications increased by 7.4% from one week ago, according to the Mortgage Bankers Association's (MBA) weekly mortgage applications survey released Wednesday.
This news comes after several weeks of declining application rates, with applications hitting a 28-year low last week, indicating potential buyers may be adjusting to still-climbing mortgage rates.
“Mortgage rates continued to increase last week. The 30-year fixed rate rose to 6.79% – the highest level since November 2022 and 270 basis points higher than a year ago,” said MBA Vice President and Chief Economist Joel Kan.
“Many borrowers are waiting on the sidelines for rates to come back down,” Kan said.
Read also: Just How Bad Is The Housing Market?
The bulk of owners are waiting to refinance, too. The Refinance Index, which measures refinancing activity, while increasing by 9% from the previous week, was 76% lower than the same week last year.
The seasonally adjusted Purchase Index increased by 7% from the previous week but was 42% lower than the same week last year.
On mortgage rates, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.79%. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances increased to 6.49%.
The slight increase in mortgage applications is welcome news for the still-cold housing market, though the uptick could just be seasonal, as the spring season usually brings out buyers.
Read next: How Are Lennar And NVR Gaining Market Share Even As Homebuilder Demand Plummets?
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