Mortgage refinance demand surges even as rates cross back over 7%. [Video]

Overall mortgage demand has now moved sideways for three straight weeks, but last week saw a split between those looking to buy a home and those hoping to save money with a refinance.

Total mortgage application volume increased just 0.1% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index, essentially flat.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 7.01% from 6.91%, with points remaining at 0.59 (including the origination fee) for loans with a 20% down payment.

“Mortgage rates moved higher last week as several Federal Reserve officials reiterated a patient posture on rate cuts. Inflation remains stubbornly above the Fed’s target, and the broader economy continues to show resiliency. Unexpectedly strong employment data released last week further added to the upward pressure on rates,” said Joel Kan, MBA’s vice president and …