Homebuyer mortgage demand rises, but rates hit highest level since summer

Higher mortgage rates do not appear to be dampening demand for home purchases but are crimping refinance volume.

Mortgage applications to purchase a home rose 3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. That is the fourth straight week of gains. Volume was 26% higher than a year ago. Annual comparisons, however, will likely get very large over the next month because homebuying stalled at the start of the pandemic one year ago.

“Purchase applications were strong over the week, driven both by households seeking more…