Is the Housing Market Adjusting to Higher Interest Rates?

Despite interest rates edging higher, applications for mortgages managed to break their losing streak.

According to the Mortgage Bankers Association’s latest report, for the week ended August 2, loan application gained 0.2 percent on a seasonally adjusted basis from one week earlier. That’s only the second increase in 13 weeks and comes after a 3.7 percent decline in the previous week. The figures include both refinancing and home purchase demand, and cover more than 75 percent of all domestic retail residential mortgage applications.

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The industry group’s refinance index was unchanged, while the unadjusted purchase index increased 1 percent. Overall, the refinance share of mortgage activity accounted for 63 percent of total applications, unchanged from the previous week, and at its lowest level since April 2011.