Mortgage applications decreased 11.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) weekly survey. 

The MBA’s Market Composite Index, a measure of mortgage loan application volume, decreased 11.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index decreased 12 percent compared with the previous week. The refinance index decreased 16 percent from the previous week and is at its lowest level since July 2011. The seasonally adjusted purchase index decreased 3 percent from one week earlier. The unadjusted purchase index decreased 4 percent compared with the previous week and was 12 percent higher than the same week one year ago.

"Mortgage rates reached their highest point in two years last week. At these rates, many fewer homeowners have an incentive to refinance, and refinance application volume declined more than 15 percent. With this decline in volume, the refinance share dropped to its lowest level in more than two years. Purchase application volume also declined, but not nearly to the same extent, as affordability remains strong," Mike Fratantoni, the MBA’s vice president of research and economics, said in a statement.

The refinance share of mortgage activity decreased to 64 percent of total applications, the lowest level since May 2011, from 67 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8 percent of total applications and is at its highest level since July 2008. The HARP share of refinance applications increased to 34 percent from 30 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $417,500 or less, increased to 4.58 percent, the highest rate since July 2011, from 4.46 percent.

The average interest rate for 30-year fixed-rate jumbo mortgages increased to 4.68 percent from 4.52 percent, the highest rate since October 2011.