Mortgage Rates Tick Up, But Loan Applications Jump Anyway

Mortgage Weekly Update

Mortgage rates inched past 3% this week, averaging 3.02%. According to Freddie Mac, it’s the highest rate seen in 10 weeks.

Unfortunately, it likely won’t be the last, either.

“As the economy progresses and inflation remains elevated, we expect that rates will continue to gradually rise in the second half of the year,” said Sam Khater, chief economist for Freddie Mac. “For those homeowners who have not yet refinanced — and there remain many borrowers who could benefit from doing so — now is the time.”

Despite the jump in rates, mortgage applications increased for the week, rising 2.1%, according to the Mortgage Bankers Association. Purchase loan applications were up 1%, while refinances rose 3%.

“Despite the jump in rates, refinances increased for the second consecutive week, pushed higher by a 4% bump in conventional refinance applications,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Purchase applications have regained an upward trend over the past few weeks. Activity was slightly higher for the third straight week, but remained lower than the same week a year ago. Government purchase applications drove most of last week’s increase, which also contributed to a slightly lower overall average purchase loan size.”

All in all, refinances accounted for 62.5% of all loan activity for the week — up from 61.7% the week prior.

More in mortgage and housing news

This week in mortgage rates

Mortgage rates increased on all loan products this week — some slightly more than others.

Here’s how rates looked for each loan type:

Check back next week for the latest in mortgage news.

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By Aly Yale / June 25th, 2021 / Categories: / Tags:

Aly Yale

Aly J. Yale is a freelance writer focusing on real estate, mortgage, and the housing market. Her work has been featured in Forbes, Bankrate, The Motley Fool, Business Insider, The Balance, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from Texas Christian University's Bob Schieffer College of Communication with a major in radio-TV-film and news-editorial journalism. Connect with her at AlyJYale.com or on Twitter at @AlyJwriter.