Mortgage Rates Roller Coaster Ride Sends Applications Index Lower

National mortgage rates continue to bounce around a volatile range. A jump in borrowing costs in the week ending August 7 caused refinance-related loans to reverse the prior week’s progress, sending demand for new loans down in the week, an industry survey said.

The weekly report from the Mortgage Bankers Association said the average rate for a 30-year loan jumped from 5.17% to 5.38%, shrinking demand for new loans. The 5.17% rate in the week before was a 4-week low.

The reversal in rates caused demand for refinance-related loans to fall 7.2% in the week, erasing the 7.2% gain it had seen in the previous week. The decline caused the Market Composite Index â€