The MBA said mortgage activity dropped 4.1 percent while refinancing decreased by 3 percent in the week.
Refinancing fell slightly to 61 percent of all mortgage activity.
The average rate for 30-year fixed rate mortgages not backed by the Federal Housing Authority rose from 4.45 percent to 4.5 percent, with points falling from 0.34 to 0.26.
For similar loans backed by the FHA, interest rates rose from 4.13 percent to 4.16 percent, with points rising from 0.1 to 0.14.
For jumbo loans of $417,000 or more, average interest rates rose from 4.4 percent to 4.45 percent, with points falling from 0.14 to 0.11.
Average rates for 15-year, fixed-rate contracts rose from 3.49 percent to 3.55 percent with points on those loans rising from 0.25 to 0.233, the MBA said.
Average rates for short-term loans with adjustable rates increased from 3.11 percent to 3.2 percent. Points for short-term loans rose from 0.31 to 0.38, the association said.
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