As interest rates rise before the election, mortgage demand slows down.

• Applications to refinance a home loan dropped 6% for the week.
• The number of mortgage applications for purchasing a home rose by 5% during the week.
• Since July, the average rate on a 30-year fixed mortgage has been the highest.

Last week, mortgage rates increased for the fourth time in five weeks, resulting in a decrease in refinancing. Despite this, the total volume of mortgage applications remained relatively stable, decreasing by only 0.1% compared to the previous week, as per the Mortgage Bankers Association's seasonally adjusted index.

The interest rate for 30-year fixed-rate mortgages with conforming loan balances has increased to 6.73% from 6.52%, with points rising to 0.69 from 0.64 (including the origination fee) for loans with a 20% down payment. This is the highest level since July of this year.

The number of applications to refinance a home loan decreased by 6% during the week, but was 84% higher than the same week a year ago, when the 30-year fixed rate was 113 basis points higher.

In September, there was a brief increase in activity with rates being 59.99 basis points lower, but overall applications have decreased by 27 percent due to a decline in refinances. Government refinances specifically accounted for 12 percent of the decrease over the past week, as stated by Joel Kan, an MBA economist, in a release.

The number of mortgage applications for purchasing homes increased by 5% during the week and was 10% higher than the same week last year. Real estate brokers have reported a rise in interest from homebuyers due to the increase in the supply of homes for sale. Some potential buyers may be looking to secure rates before any market fluctuations around Election Day.

This week, mortgage rates increased, with the average rate on a 30-year fixed mortgage rising above 7% on Tuesday, as reported by Mortgage News Daily.

"The jobs report, election, and Fed announcement pose a risk of substantial movement on Friday, next Wednesday, and next Thursday, with volatility potential remaining elevated through the 2nd half of next week, according to Matthew Graham, chief operating officer at MND."