Weekly mortgage demand inched up, despite higher interest rates. Here's why.

Week saw a rebound in mortgage demand following a brief lull despite the fourth consecutive weekly increase in mortgage rates as per the seasonally adjusted index from the Mortgage Bankers Association which reported a 1..+ increase, in total application volume compared to the prior week.

Mortgage Demand Rebounds Amid Rising Rates and Geopolitical Uncertainty

Homebuyers submitted 2 percent mortgage applications last week compared to the previous week; however there was a 1 percent decrease compared to the same period last year. The rise, in purchase demand was primarily fueled by FHA loans; notably FHA purchase applications experienced a notable 7 percent climb.

Joel Kan mentioned in a statement that the inventory of homes has increased in certain areas recently and some homebuyers are benefiting from this by capitalizing on the higher supply and lower FHA rates that are slightly lower, than the conventional 30 year fixed rate.

FHA Loans Lead the Surge in Mortgage Applications

Refinancing applications for home loans increased by 2 percent this week marking a 43 percent surge compared to the period last year fueled primarily by a significant uptick of 10 percent, in VA applications.

According to a report by Mortgage News Dailys survey findings for this week indicate that mortgage rates have remained relatively stable up to now with some minor fluctuations observed earlier in the week. A slight increase noted Monday followed by a decline the next day following reports that the U.S had granted permission for Ukraine to deploy long range missiles against Russia amidst escalating tensions between the two nations involving threats of nuclear retaliation from Russia in response to such actions.Investors sought refuge in bonds amid this climate. A move commonly referred to as a "flight, to safety."

Refinancing Trends: VA Applications Drive a 43% Increase

Matthew Graham from Mortgage News Daily expressed disappointment in the changes in mortgage rates compared to the sensational news reports – possibly due to the recurring threats, from Russia or traders hesitancy to trigger any catastrophic events by engaging in risky actions.