Mortgage Applications Rise as Rates Hit 2026 Highs

Mortgage Demand Rises Despite Higher Rates

Mortgage applications recently increased 3.2% week-over-week and 11% compared with the same time last year. This increase occurred even as mortgage rates moved up to 6.35%, according to Mortgage News Daily. These numbers show that borrowing activity remains active despite higher financing costs.

What Rising Applications Suggest

Mortgage application growth typically reflects buyer demand entering the market. The latest data shows that more borrowers are applying for loans compared with last year. Higher rates usually reduce borrowing activity. However, this week’s increase suggests that many buyers remain engaged in the market. Some borrowers may also be moving quickly to secure financing before rates increase further.

Federal Reserve Expectations

Markets are closely watching the upcoming Federal Reserve meeting next week. Prediction markets on Polymarket currently suggest the Federal Reserve may maintain current interest rate levels at the March meeting. Stable policy rates can influence mortgage rate expectations. If borrowing costs stabilize, mortgage demand may remain steady in the near term.

What This Means for the Puget Sound Market

For buyers and sellers in King, Pierce, and Snohomish counties, mortgage rates remain a key market driver. Borrowing costs affect purchasing power and buyer confidence. However, the current data shows that applications increased even as rates moved higher. Therefore, buyer activity appears resilient heading into the spring housing season. Mortgage demand and interest rate trends will continue to shape the market in the coming weeks.