The refrain is becoming all too familiar. Mortgage interest rates rise, and homebuyers and refinancers retreat. Total mortgage application volume fell 1.2 percent last week from the previous week, according to the Mortgage Bankers Association. Volume is down nearly 11 percent in the past four weeks, as rates climbed. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since June, 2016, 3.75 percent, from 3.71 percent, with points decreasing to 0.36 from 0.37 (including the origination fee) for 80 percent loan-to-value ratio loans.

Adam Jeffery | CNBC

"Globally, rates have begun to creep upwards as investors anticipate less aggressive monetary policies from central banks, and U.S. rates are being pushed upwards in response," said Michael Fratantoni, the MBA's chief economist. "Additionally, new data show continued positive signals regarding the job market and rising inflation, indicating that the Fed is likely to hike in December and will continue increasing rates next year."

