Contract rates on mortgages on newly built homes rose to 4.02%, while Freddie Mac reported an increase to 4.15%.
A Fannie Mae survey also found out that for the first quarter of the year, a small group of lenders anticipate a decrease in demand for GSE-eligible mortgages in part because of higher mortgage rates.
About half of large and mid-sized institutions believed demand would fall because of unfavorable mortgage, while 30% of small institutions share the same sentiment.
However, new home sales contracts went up by 3.7% in January despite higher mortgage rates. And existing home sales, for both single-family homes and condos, rose by 3.3% in January – the fastest pace since February 2007.
On the contrary, pending home sales dropped by 2.8% in January – the lowest level in a year – according to the National Association of Realtors’ Pending Home Sales Index.
Get borrowers off the sidelines and into a home
Buyer demand hits new high – Redfin
Mortgage rates increased in the beginning of the year, according to a recent survey by the Federal Housing Finance Agency.