Increasing rates expected to cut application activity

Mortgage application activity fell just 1% for the week ending Feb. 3, compared with the prior week despite an 11 basis point increase in the 30-year fixed rate.

The Refinance Index was essentially unchanged at 1751, versus 1747 previously, as reported by the Mortgage Bankers Association. The Purchase Index slipped 2% to 425. As a percentage of total application activity, refinancings accounted for 42.1%, down from 43%. ARM share was also slightly lower at 29.8% compared to 30.5%.