Mortgage Applications Down as Rates Rise

Washington, DC, July 6, 2011 -- Mortgage applications fell 5.2% last week as mortgage rates rose, the Mortgage Bankers Association said.

The refinance index fell for the third-consecutive week, dropping 9.2% over the previous week and the seasonally-adjusted purchase index grew 4.8%.

"Stronger economic data towards the end of the week coupled with the end of the Fed's second round of quantitative easing helped bring mortgage rates to their highest level in over a month," said Michael Fratantoni, MBA's vice president of research and economics.

"Refinance activity, already constrained by a smaller pool of eligible borrowers, declined in response to the higher rates, but purchase applications picked up appreciably in the week before the July 4th holiday."

The 30-year, fixed-rate mortgage increased to 4.69%, up from 4.46%, while the 15-year rate rose to 3.79%, up from 3.64%.