In a mortgage market that has become comfortable with near record-low interest rates, any move higher makes a difference. A slight increase last week caused total mortgage application volume to fall 2.3 percent, according to the Mortgage Bankers Association's seasonally adjusted report.

Applications to refinance led the way down, falling 3 percent for the week after marking a sharp rise during the previous week. The giveback could have been expected but was likely pushed by the increase in interest rates.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $424,100 or less increased to 4.20 percent from 4.19 percent, with points decreasing to 0.39 from 0.40, including the origination fee, for 80 percent loan-to-value ratio loans.

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