Even though interest rates on home loans have ascended to the highest level in more than two-and-a-half years, new mortgage applications still accelerated.

Loan applications during the week ended Dec. 16, as measured by the Market Composite Index, rose a seasonally adjusted 3 percent from the prior week.

Even when seasonal adjustments are not applied, new applications for residential loans still moved higher by 2 percent on a week-over-week basis.

Source: Mortgage Daily