Mortgage rates are on the rise, prompting fewer homeowners to refinance their mortgages, but the increase doesn't appear to be deterring homebuyers yet.
The lower refinance demand caused overall mortgage applications to drop 2.6 percent last week, the Mortgage Bankers Association reported. The MBA's survey covers about 75 percent of the residential mortgage market.
Meanwhile, loan applications for home purchases -- viewed as a leading indicator of future home sales -- inched up slightly by 0.5 percent for the week ending July 12.
Mortgage rates were at a two-year high last week, with the 30-year fixed-rate mortgage averaging 4.68 percent -- the highest level since July 2011, the MBA reported.