The weekly MBA mortgage application summary is out, and it shows a drop in refinancing activity, mirroring an increase in rates. Purchase apps, however, are up.

The Market Composite Index, a measure of mortgage loan application volume, was 657.2, an increase of 0.6 percent on a seasonally adjusted basis from 653.3 one week earlier. On an unadjusted basis, the Index increased 1.4 percent compared with the previous week and was up 9.4 percent compared with the same week one year earlier. The Refinance Index decreased 3.2 percent to 2015.8 from 2081.6 the previous week and the seasonally adjusted Purchase Index increased 4 percent to 427.3 from 411 one week earlier. The seasonally adjusted Conventional Index increased 0.9 percent to 972.3 from 964.1 the previous week, and the seasonally adjusted Government Index decreased 2.4 percent to 131.8 from 135.1 the previous week.

Not surprisingly, ARM share continues to drop. Looks like all that press about the dangers of an adjustable-rate mortgage might be working.