Mortgage Applications Up Despite Higher Rates

Washington, DC, April 8, 2009--Mortgage applications filed last week rose a seasonally adjusted 4.7%, increasing even as interest rates rose from the week before, the Mortgage Bankers Association said Wednesday.

Filings to refinance existing loans increased 3.2% for the week ended April 3 compared with the week before, while mortgage applications to buy homes rose a seasonally adjusted 11.1%, also on a week-to-week basis, the MBA's latest survey showed.

The four-week moving average for all mortgages was up 13.3%, mainly reflecting strength in refinancing activity, according to the MBA.

Overall, applications last week jumped an unadjusted 67.6% compared with the same week in 2008.

The MBA's latest results show a continuation of the trend seen recently as more people test the waters in the aftermath of the government's moves to stimulate activity in the housing market.

Also in the April 3 week, applications filed to refinance existing mortgages made up 77.9% of all activity, down from 79.1% the previous week.

The rate on 30-year fixed-rate mortgages averaged 4.73% last week, up from 4.61% the week before.