Investing.com -- Mortgage applications fell 1.6% last week as interest rates climbed, according to the Mortgage Bankers Association's seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less rose to 6.37% from 6.35%. Points remained at 0.61, including the origination fee, for loans with a 20% down payment.

Refinance applications dropped 4% for the week but remained 51% higher than the same week one year ago, when the 30-year fixed rate was about a half percentage point higher.

Purchase applications increased 1% for the week and were 21% higher year over year. More housing inventory has entered the market, and buyers appear to be adjusting to news regarding the war with Iran.