Mortgage rates have increased for six consecutive weeks, but that wasn't enough to slow down new mortgage activity. Next week's interest rates are likely to be lower.

The average number of pricing inquiries pulled per loan originator inched up less than 1 percent from last week, leaving the U.S. Mortgage Market Index from LoanSifter and Mortgage Daily for the week ended June 14 at 313.

But compared to the same week last year, the index was higher, with the year-over-year increase working out to 11 percent.
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A surge in conventional refinance activity helped push up overall activity to the highest level in more than a year-and-a-half despite deteriorating interest rates.

Even a holiday week wasn't enough to slow down home purchase financing -- which increased for the third consecutive week. But refinance business was a different story. Rising mortgage rates moved above 4 percent for the first time in more than a year and are likely to be even higher in the next report.

Loan originators managed to overcome the slowdown that normally precedes a holiday week and pushed activity higher. Leading the way were purchase transactions and government-insured business.

Although overall new mortgage activity was slower this week, purchase financing was up, albeit only slightly. Adjustable-rate mortgage activity also ticked higher.