The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 7.09% from 6.99%. Applications to refinance a home loan were 22% higher than the same week one year ago.

“Even by the end of next year, it’s hard to see sub 6 percent mortgage rates,” said Mark Fleming, chief economist at First American, which predicts the average rate on a 30-year mortgage will range between 6% and 6.5% next year, per a report from The Hill.

After climbing to their most expensive level in more than seven months, 30-year mortgage rates held steady Tuesday. Rate movement was mixed for other loan types.

Mortgage demand has started stronger this year compared to last, despite higher interest rates. According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume was 7% higher last week than one year ago.