Applications for mortgage fell last week, showing a drop in demand for home refinancing loans as the 30-year fixed mortgage rates soared to its highest level since June. The Mortgage Bankers Association said Wednesdays in its weekly report.

The MBA said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended August 7 fell 3.5 percent to 499.0.

Purchase loan request buy new homes, an early indicator of sales, increased slightly.

The average 30-year mortgage rates, excluding fees, averaged 5.38 percent up 0.21 percentage point from 5.17 percent in the week ended July 31. This is the highest rate since the week ended June 19 and much higher than the 4.61 percent set in March.

The MBA’s seasonally adjusted index of refinancing applications fell 7.2 percent to 1,853.8, following an increase of the same amount the previous week.

The share of refinance applications decreased from 54.2 percent the previous week to 52.3 percent and was well below its peak of 85.3 percent in the week ended January 9.

The share of adjustable-rate mortgage activity increased to 5.8 percent in the latest week, up from 5.4 percent the previous week.

Fixed 15-year mortgage rates averaged 4.71 percent, up from 4.60 percent the previous week. Rates on one-year adjustable-rate mortgages was up to 6.71 percent from 6.67 percent.