Demand for loans rose last week despite the increase in interest rates. Here is an article from REALTOR® Magazine Online, May 2, 2007:

Despite rising interest rates, mortgage applications rose last week, with the Market Composite Index up 0.6 percent on a seasonally adjusted basis. On an unadjusted basis, applications were up 1.4 percent compared with the previous week and 9.4 percent compared with the same week one year ago.

The refinance share of mortgage activity decreased to 41.5 percent from 43.4 the previous week.

The average interest rate for a 30-year fixed-rate mortgage increased to 6.14 percent from 6.13 percent. The average interest rate for a 15-year fixed-rate mortgage increased to 5.83 percent from 5.82 percent. The average interest rate for a one-year ARM remained unchanged at 5.79 percent.

John O’Dell is a licensed real estate broker, civil engineer and general contractor.