Highlights
Rising mortgage rates are making a dent in refinancing but may be boosting home purchases. The Mortgage Bankers' refinancing index, now at 1,857.2, fell 2.0% in the March 25 week following the prior week's 16.5% plunge. In contrast, the purchase index gained 5.5% in the week to 470.9. The purchase index is up 13% since mid-February, when mortgage rates started to spike higher. Thirty-year fixed mortgage loans averaged 6.08%, up 13 basis points from the prior week and up nearly 60 basis points since mid-February. It's doubtful whether home demand can remain this strong especially if rates continue to move higher.