“Underlying interest rates are moving higher, dragging mortgage rates along with them,” said Keith Gumbinger, vice president of HSH.com, a data and analytics site. “This has come as the result of somewhat better conditions in the labor market, helping investors feel more confident that the recovery will overcome its recent soft patch.”
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The higher rates cause a drop in mortgage applications. Refinance volume fell 8 percent, while mortgage applications to purchase a home fell 4 percent, according to the MBA report.
Article source: http://www.cnbc.com/id/100738799