Mortgage Applications Down as Rates Rise

Washington, DC, Dec. 15, 2010 -- Mortgage application volume fell 2.3% for the week ending Dec. 10, the third straight week of declines according to the Mortgage Bankers Association.

The MBA refinance index fell 0.7% as well, the fifth straight week of declines, but the refinancing share of the mortgage activity grew to 76.7% of total applications, up from roughly 75% the week before.

Purchase applications fell 5% after climbing for three consecutive weeks.

Mortgage rates reached their highest level in more than six months last week, pushing refinancing activity down.

The average interest rate on a 30-year fixed-rate mortgage increased to 4.84%, up from 4.66% the previous week. Rates on the 15-year mortgages increased to 4.21% from 3.98%.