Higher Rates Soften Mortgage Demand

Washington, DC, Feb. 16, 2011 -- Mortgage application volume dropped last week as high interest rates continued to soften demand for refinancings, according to the Mortgage Bankers Association.

The association said its seasonally adjusted index of mortgage application activity dropped 9.5% in the week ended Feb. 11.

The MBA's seasonally adjusted index of refinancing applications fell 11.4% last week to its lowest level since the week ended July 3, 2009.

Applications for home purchases was down 5.9%.

Fixed 30-year mortgage rates averaged 5.12% in the week, inching down from 5.13% the week before.