Mortgage rates rose for the third week in a row, this time reaching their highest point since July.
Data from the Mortgage Bankers Association shows mortgage rates on 30-year, fixed-rate loans climbed to 4.05% this week—up from 4.02% last week. Averages on FHA loans were slightly lower at 3.83% (up from 3.79% the week prior).
According to Sam Khater, the chief economist for Freddie Mac, the steady stream of upticks hasn’t slowed down buyers much.
“This week marks the third consecutive week of rate increases, which hasn’t happened since April of this year,” Khater said. “That said, purchase activity continues to show strength, indicating obvious homebuyer demand.”
MBA’s data shows mortgage application volume was basically unchanged over the week. Purchase activity increased slightly by 2%, while refinances fell just 1%. Refinances were still 134% higher than a year ago.
According to MBA’s Joel Kan, the strong demand for homes will likely hold steady.