"Surging Mortgage Demand Defies Rising Interest Rates in 2024"

Despite a slight increase in mortgage rates, the Mortgage Bankers Association's index of mortgage applications surged 9.9% at the start of the new year, with both home purchase and refinance applications on the rise. The housing market, impacted by the Federal Reserve's aggressive tightening campaign, continues to be interest rate-sensitive, with available home supply down significantly from pre-pandemic levels. Economists believe the central bank may be done raising interest rates, which could help bring down high mortgage rates and stimulate housing market activity.