The rise in mortgage rates to a seven-year high of 4.8% over April has had contrasting impacts on refinancing and home purchase applications. Refinancing applications fell, approaching a 10-year low, while home purchase applications jumped to within sight of a nine-year high. But once the surge in applications from households seeking to beat further rate increases passes, the lack of inventory implies demand for home purchase mortgages will fall away over the next year.
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