Loan demand for home purchases and refinancings was on the rise last week even though mortgage rates were at some of its highest averages in more than a year. 

Mortgage applications rose 16 percent for the week ending June 7, the Mortgage Bankers Association reports in its weekly index, which covers more than three-quarters of all U.S. residential mortgage applications. Broken out, both mortgage applications for refinancings and applications for home purchases rose 5 percent from the prior week. 

A stronger economy is prompting interest rates to rise in recent weeks. The average for the 30-year fixed-rate mortgage -- the most popular among home buyers -- jumped to 4.15 percent, which is its highest average since March 2012, the MBA reports. National averages for 15-year fixed-rate mortgages last week increased to 3.32 percent, the highest level since April 2012. 

Source: The Wall Street Journal