Would-be homebuyers have no choice but to deal with elevated rates if they want to buy this spring.

The average rate on a 30-year fixed loan hit 7.1%, according to Freddie Mac. That’s the first time the weekly average has exceeded 7% this year and a significant jump from last week’s 6.88% mark.

A separate index tracking daily rate changes found even bigger swings. The daily average rate on the 30-year fixed mortgage hit 7.43% on Thursday, a steep climb from barely 7% at the beginning of the month, according to Mortgage News Daily. The daily average has risen nearly a half-point over the past three weeks and shows little signs of easing following an inflation reading this month that came in hotter than expected.

While elevated rates have cornered both first-time and repeat homebuyers, others are moving to secure their purchase before rates tilt any higher.

“As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later this year,” said Sam Khater, chief economist at Freddie Mac. “Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future.”

Read more: Mortgage rates today, April 18: Rates cross the 7% mark

Homebuyers race to beat rate hikes

While higher mortgage rates may have ebbed demand for some segments of the buyer pool, demand for mortgage applications increased for the second week in a row.

The volume of purchase applications rose by 5% during the week ending April 12, after slipping by 5% one week earlier, the Mortgage Bankers Association’s weekly survey found. Still, purchase activity remained 10% below last year’s pace.

Meanwhile, the share of refinance applications was rather tepid, rising just 0.5%, following a 10% jump the week prior. The recent surge in refinance demand stemmed from government loan applicants eager to snag a lower rate.

Overall, demand for all mortgage applications rose just 3.3% from one week ago — a bit of a slow start to the spring season.

“Despite these higher rates, application activity picked up, possibly as some borrowers decided to act in case rates continue to rise,” said Joel Kan, MBA’s vice president and deputy chief economist.

'The spring housing market has not sprung'

On the other hand, sales of previously owned homes were lackluster in March.

Existing home sales retreated more than 4% in March to a seasonally adjusted annual rate of 4.19 million, the National Association of Realtors (NAR) said Thursday. Sales were down nearly 4% compared to a year ago.