Mortgage applications decreased 2 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

Total volume is now down almost 21 percent compared to a year ago, CNBC reported.

"Purchase applications are not increasing as fast as is typically expected at this time of the year," Joel Kan, MBA's associate vice president of industry surveys and forecasting, told CNBC.

"Rates were up last week as markets assessed that the Fed might increase rates sooner than expected on the strength of a recent pick-up in inflation readings," Kan said.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.36 percent from 4.32 percent.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.56 percent from 3.55 percent.

The refinance share of mortgage activity decreased to 46.2 percent of total applications, the lowest level since November 2008, from 46.9 percent the previous week.

(Newsmax wire services contributed to this report).

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