Mortgage Applications Down on Higher Rates

Washington, DC, Feb. 9, 2011 -- Mortgage application volume fell last week as interest rates rose to their highest levels in 10 months, according to the Mortgage Bankers Association.

The MBA's Market Composite Index decreased 5.5% on a seasonally adjusted basis from one week earlier, when applications were up 11.3%.

Refinancing demand, which makes up the bulk of mortgage applications, fell 7.7% last week. Home purchase applications fell 1.4%.

The average contract interest rate for 30-year fixed-rate mortgages increased to 5.13% from 4.81%, while 15-year rates rose to 4.29% from 4.13%.