"Rising oil prices and an improved outlook for global economic growth combined with declining U.S. jobless claims to push U.S. Treasurys higher during the latter half of last week," said Lynn Fisher, MBA's vice president of research and economics.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances (up to $417,000) increased to 3.85 percent from 3.83 percent, with points increasing to 0.35 from 0.32 (including the origination fee) for 80 percent loan-to-value ratio loans.
Refinance applications, which are more rate sensitive, dropped 5 percent from the previous week, seasonally adjusted. Refinance volume is, however, nearly 12 percent higher than one year ago, as rates still hover below 4 percent, which is historically low.
Mortgage applications to purchase a home fell 2 percent from the previous week but are 14 percent higher than the same week one year ago.