Mortgage Applications Drop 9.2% as Borrowing Costs Rise

Mortgage applications fell last week as rising borrowing costs led to less purchases and refinancing.

The Mortgage Bankers Association's index dropped 9.2% in the period ended June 13, after increasing 10.3% in the week prior, the Washington-based trade group reported today.

The refinancing gauge fell 12.7%, reversing the 11% climb the week prior. The measure for purchase applications slipped 4.7%.

The average rate on a 30-year fixed loan rose to 4.36% from the prior week's 4.34%. The average rate on a 15-year mortgage increased to 3.5% from 3.43%.

The share of applicants seeking to refinance contracted to 51.7% from 53.6% the week before, today's report showed.