Mortgage Rates Rise for Second Week as Housing Demand Increases

Despite higher rates, the housing market sees a surge in demand, with expectations of renewed activity in the spring.

The average rate for a 30-year fixed mortgage rose to 6.66%, an increase from 6.62% last week, marking the second consecutive week of increase.
The rate on the 15-year fixed mortgage edged lower for a second straight reading, averaging 5.87% after coming in last week at 5.89%.
Despite the slight increase in mortgage rates, demand in the housing market has picked up at the start of the year, but low inventory is keeping home prices elevated.
The Mortgage Bankers Association's index of mortgage applications rose 9.9% for the week ended Jan. 5, compared with one week earlier.
With rates expected to remain below 7 percent for the foreseeable future, renewed activity in the housing market is anticipated heading into the spring, especially if housing supply continues to rise.