Rising rates not stunting loan demand

MBA: Purchase-loan volume to grow 30%, refis to shrink 66% in 2011

Demand for purchase loans held up during the final two weeks of 2010, even as rates on 30-year fixed-rate mortgages approached 5 percent before retreating.

Demand for purchase loans was up 3.1 percent from the week before during the week ending Dec. 24 and was essentially flat during the week ending Dec. 31, falling by 0.8 percent, the Mortgage Bankers Association said in releasing the results of its Weekly Mortgage Applications Survey.

Those numbers are seasonally adjusted, and also include an adjustment to account for the Christmas and New Year’s Day holidays.