Mortgage demand rises for the first time in six weeks

Mortgage application volume increased last week for the first time in six weeks, according to the Mortgage Bankers Association, despite a rise in interest rates.

Abrupt swings in rates and uncertainty on the overall direction of the housing market are likely at play.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 6.25% from 6.01%, with points decreasing to 0.71 from 0.76 (including the origination fee) for loans with a 20% down payment.

“Treasury yields continued to climb higher last week in anticipation of the Federal Reserve’s September meeting, where it is expected…