A home for sale is seen in Santa Monica, California.
Lucy Nicholson | Reuters
Mortgage rates rose last week, along with demand for refinances. That may sound counterintuitive, but it speaks to the larger picture of where mortgage rates are heading.
Applications to refinance a home loan rose 3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 9% lower than a year earlier.
The data comes as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) rose to the highest level in a month. It increased to 3.18% from 3.11%, with points increasing to 0.48 from 0.36…