Mortgage applications last week dropped 13.5 percent compared to the prior week as interest rates continued to rise, making it less attractive for home owners to refinance, the Mortgage Bankers Association reported Wednesday. 

The refinance index dropped 28 percent last week compared to a week earlier.

Meanwhile, the purchase index -- a future gauge of home buying activity -- decreased just 2.7 percent for the week. 

Rates continue to climb since hitting all-time lows reached in May. The 30-year fixed-rate mortgage -- the most popular choice among home buyers -- averaged 4.8 percent last week, up from 4.73 percent the prior week, according to the MBA. The average 15-year fixed-rate mortgage increased from 3.75 percent to 3.83 percent last week. 

Source: Wall Street Journal