As interest rates on home loans climbed to the highest levels in seven years, refinances led weekly mortgage applications lower, and adjustable-rate mortgage share jumped to a 16-month high.

Retail applications for residential loans during the seven days ended Oct. 5 descended a seasonally adjusted 1.7 percent from one week previous based on the Market Composite Index.

The decline compared to the week that concluded on Sept. 28 was even greater when seasonal factors are not considered, with the unadjusted index falling 2 percent.

Source: Mortgage Daily