Mortgage Application Volume Falls as Rates Climb

Mortgage applications dipped last as long-term rates reached a five-month high, according to the ""Mortgage Bankers Association"":http://www.mortgagebankers.org/default.htm (MBA).

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MBA's weekly Market Composite Index showed a 6.4 percent drop for the week ending February 8. On an unadjusted basis, the index was down 5 percent.

After ""showing some strength"":https://themreport.com/articles/mortgage-applications-pick-up-purchase-volume-strongest-in-18-months-2013-02-06 in the previous week, purchase application activity also dropped, falling by an adjusted 10 percent (or an unadjusted 4 percent). Year-over-year, however, volume was still up 15 percent.

The Refinance Index also fell, slipping 6 percent week-over-week. The refinance share of total applications was unchanged at 78 percent.

Meanwhile, MBA's measure for the average interest rate on a 30-year fixed-rate mortgage increased, reaching 3.75 percent. The last time the 30-year fixed average was that high was in September last year, MBA reported.