Mortgage rates climbed higher last week, which caused mortgage application volume to drop slightly by 1.3 percent on a seasonally adjusted basis last week compared to the previous week, the Mortgage Bankers Association reports. The 30-year fixed-rate mortgage rose to 4.12 percent – its highest level since August, the MBA says. "Mortgage rates were up for the third consecutive week as markets responded to a stronger-than-expected job market report for October," says Mike Fratantoni, chief economist for the MBA. The Federal Reserve has strongly hinted that it could begin to raise rates in December. Applications for refinancings dropped 2 percent last week compared to the previous week but remain 4 percent higher than one year ago, the MBA reports. Applications to purchase homes appeared unfazed by the climb in rates, increasing 0.1 percent week-to-week. Mortgage applications for home purchases are 18 percent higher than the same week one year ago, the MBA says.

Source: CNBC