Mortgage rates recently reached their highest level since May 2017 according to Bankrate.com. The average 30-year fixed rate home loan is 4.20%, and it’s expected to continue climbing into the busy spring months. The 15-year fixed rate mortgage has already increased to 3.62%.
Despite these higher rates, the total number of mortgage applications is increasing. More prospective buyers are applying for loans, and more homeowners are looking to refinance. While this seems counterintuitive, industry experts are quick to point out that this surge in applications could be largely driven by fear – especially given predictions that rates will rise even further in coming months.