Mortgage applications fall 3% as rates jump

• Mortgage applications fell 3%25 from last week due to rising mortgage rates
• The purchasing index increased 2%25 from last week%2C 16%25 higher than it was the same week a year ago
• Refinancing activity fell 2%25 from the previous week

The increase in mortgage rates since the Fed's announcement last week has slowed homebuying activity. Mortgage applications fell 3% from last week, according to data from the Mortgage Banker's Association (MBA).

The market composite index, a measure of mortgage loan application volume, decreased 3.0% on a seasonally adjusted basis from one week earlier to the lowest level since November 2011. The refinancing index also fell 3% to its lowest level since November 2011.

Though the numbers have decreased slightly, the housing market is still recovering. The purchasing index increased by 2% and is up 16% from the same week a year ago.

"Mortgage rates increased by the most in a single week since 2011, and refinance application volume dropped to its lowest level in almost two years," said Mike Fratantoni, MBA's Vice President of Research and Economics, "However, applications for conventional purchase loans picked up by more than 3% over the week, and total purchase applications were 16% higher than one year ago, indicating that homebuyers are not yet dissuaded by the increase in mortgage rates."

The adjustable-rate mortgage (ARM) share of activity increased to 7% of total applications, while the government share of purchase applications dropped to 28%, the lowest level since the MBA began the survey.