By Diana Olick | CNBC
The interest rate sharp jump to the highest level this year caused a sudden surge in mortgage applications. While that may seem counter-intuitive, there’s a reason: fear that rates will move even higher.
Total mortgage application volume jumped 8.4 percent on a seasonally adjusted basis last week from the previous week, according to the Mortgage Bankers Association. The previous week included an adjustment for the Memorial Day holiday.
“Mortgage application volume rebounded strongly … indicating that the holiday had a larger impact on business activity than originally assumed,” said Mike Fratantoni, the association’s chief economist.
