The numbers: Mortgage demand rose ahead of a U.S. Federal Reserve decision on interest rates.

Despite mortgage rates rising to the highest level in four weeks, home buying and refinance demand rose. The rise in applications also came ahead of the Fed’s decision on interest rates due Wednesday.

Demand for refinancing and purchase applications rose. That overall pushed the market-composite index—a measure of mortgage application volume—up, the Mortgage Bankers Association (MBA) said on Wednesday.

The market index rose 5.4% to 192.1 for the week ending September 15 from a week earlier. A year ago, the index stood at 264.7.

Key details: Even though the 30-year rate rose to the highest level in four weeks, demand rose.

Some buyers waded back into the market. The purchase index—which measures mortgage applications for the purchase of a home—rose 2.3% from last week.

On the other hand, a number of homeowners saw an opportunity to refinance. The refinance index rose 13.2%.

The average contract rate for the 30-year mortgage for homes sold for $726,200 or less was 7.31% for the week ending September 15. That’s up from 7.27% the week before, the MBA said.

The rate for jumbo loans, or the 30-year mortgage for homes sold for over $726,200, was 7.32%, up from 7.25% the previous week.

The average rate for a 30-year mortgage backed by the Federal Housing Administration rose to 7.08% from 7.04%.

The 15-year fell to 6.62% from 6.72% from the previous week.

The rate for adjustable-rate mortgages rose to 6.42% from last week’s 6.59%.

The big picture: Even though overall demand for mortgages rose last week, purchase applications are only edging up, which shows that buyer demand is weak.

Aside from mortgage rates, which are firmly over 7%, high home prices stemming from a shortage of for-sale listings are also hurting home buyers. Buyers are facing stiff competition over a limited supply of inventory.

The Fed meeting later today will offer some indication of whether mortgage rates will stay in this period and holding the housing market hostage, or whether they will drop over the next few months. While most are expecting the Fed to hold its policy interest rates steady during this meeting, the central bank will also offer what it’s expecting regarding interest rates, the economy, and the job market to go in the future.

What the MBA said: Home buyers “continue to face higher rates and limited for-sale inventory, which have made purchase conditions more challenging,” Joel Kan, deputy chief economist and vice president at the MBA, said in a statement. “Refinance applications also increased last week but are still almost 30 percent lower than the same week last year.”

Market reaction: The yield on the 10-year Treasury note was over 4.3% in early morning trading Wednesday.

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