Mortgage applications dip as rates continue to climb

The number of mortgage applications for the week ending February 15, 2013 decreased 1.7 percent on a seasonally adjusted basis from one week earlier, the Mortgage Bankers Association announced today. On an unadjusted basis, the Index decreased 1 percent compared with the previous week.

The Refinance Index decreased 2 percent from the previous week. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier, but unadjusted, the Purchase Index increased 3 percent compared with the previous week and was 17 percent higher than the same week one year ago.

The refinance share of mortgage activity decreased to 77 percent of total applications, the lowest level since May 2012, from 78 percent the previous week.. The adjustable-rate mortgage share of activity also held at 4 percent of total applications.

Interest rates for 30-year fixed-rate loans with conforming balances, continuing an upward trend for eight of the last nine weeks,  increased to 3.78 percent from 3.75 percent, the highest rate since  August 2012. Interest rates for jumbo loans also decreased to 3.94 percent from 3.98 percent. Rates for Federal Housing Administration-backed 30-year fixed-rate loans increased to 3.54 percent, the highest rate since August 2012, from 3.53 percent, while 15-year fixed-rate mortgages increased to 3.03 percent from 3.01 percent, the highest rate since September 2012. —Christopher Cameron