Mortgage applications decreased last week

During the next couple of years, refinancing applications are expected to drop while purchase loans rise and interest rates gradually move up to above 5 percent, according to a long-term report released by MBA last week. 

The Federal Reserve announced a plan today to purchase $600 billion Treasuries through June of next year, which could keep mortgage rates low for at least the next six months.

The refinance share of mortgage activity decreased to 81.3 percent of total applications from 82.3 percent the previous week. 

The average rate on a 30-year fixed mortgage increased slightly to 4.28 percent, from 4.25 percent, hovering around record lows. 

The average rate on a 15-year fixed loan fell to 3.64 percent, from 3.67 percent.