Mortgage demand fluctuates as interest rates rise and fall.

Mortgage demand has dropped as interest rates hit a two-month high, with mortgage applications to purchase a home falling 4.8% last week compared to the previous week. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.57% from 6.48%, with points remaining at 0.61. Applications to refinance a home loan fell a steeper 8% for the week, as refinances are much more sensitive to weekly rate changes.