Mortgage lenders in the US saw a 12% increase in applications from a week earlier — with the average contract interest rate for 30-year fixed mortgages increasing to 3.86% from 3.69%, according to the Mortgage Bankers Association.

Joel Kan, MBA’s associate vice president of economic and industry forecasting, pointed out that refinance applications were up 18% with homeowners “trying to secure a refinance before rates go even higher.”

Investors expect the Federal Reserve to begin raising interest rates in March to fight inflation.

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