According to the Mortgage Bankers Association, mortgage rates are on the rise this month. They rose to their highest point in eight months last week. This caused mixed mortgage demand last week and resulted in little change to the previous week.

For loans that have a 20% downpayment, the average 30-year fixed-rate interest rate on mortgages has increased to 3.30%. The rate was 30% lower last year.

Refinance demand dropped 2% from week to week seasonally. Volume was 26% less than in the previous week. From 63.3%, the week before, refinance activity was only 2.2%.

The fifth consecutive decline in refinance activity was triggered by the rate increase. This is the lowest weekly pace since January 2020. Joel Kan, MBA’s assistant vice president for economic and industry forecasting, stated in a statement that higher interest rates have lowered borrowers’ desire to refinance.

The week saw an increase in mortgage applications for home purchases of 4%, but they were still 9% below the previous week. The average loan amount rose three times as fast, due to rising home prices and the majority of sales being in the higher price ranges.

Kan said that “both existing and new home sales were at their highest pace since 2021 early, but first-time buyers account for a decreasing share of activity.”

Get the most recent information about home prices S&P Case-ShillerPrices rose by nearly 20% in the US, however, the annual increase, which had been steadily rising for the last year, didn’t change over the month before. It could mean that prices are cooling a bit due to higher mortgage rates.

Although mortgage rates fell slightly in the first week of this week, it could be temporary. Next week’s rate hikes will likely follow. It’s widely believed that the Federal Reserve next Wednesday will announce that it is cutting back on its mortgage-backed bond purchases. Rates should rise even more as a result.