According to the Mortgage Bankers Association mortgage rates rose last week and the response was a lower volume of new loan applications. The volume of mortgage loan applications declined 3.5% compared with the previous week. Home loan applications filed were still up an unadjusted 16.1% for the week ended Aug. 7 from the same week in 2008, according to the MBA’s weekly survey. FHA home loan applications filed last week to purchase homes rose 1.1% from the week before. Volumes for conforming, FHA and VA loan applications were all lower than expected.

Mortgage refinancing applications to refinance existing home mortgages decreased 7.2%, on a week-to-week basis, reversing the 7.2% increase during the week ended July 31, according to the Washington-based MBA. The four-week moving average for all mortgages was down 0.7%. Home refinancing applications made up 52.3% of all applications last week, down from 54.2% the previous week. ARM mortgage loans accounted for 5.8%, up from 5.4%. Read the complete article online> Mortgage Loan Application Activity Slowing