According to The Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage loan applications fell 7.5 percent last week. The average contract interest rate for 30-year fixed-rate mortgages increased to 4.92 percent from 4.80 percent the week before, causing a 10.1 percent drop in the Refinance Index. The Purchase Index was down just 1.7 percent. Michael Fratantoni, MBA’s vice president of research and economics, said the rise in rates caused a predictable response in refinance volume, while purchase volume remained flat as the market enters its peak home buying season. More here and here.