The Mortgage Bankers Assn.'s weekly report on mortgage applications showed a decrease in demand as rates ticked upward to 3.85% from 3.83% on conventional 30-year loans. Here's CNBC's Diana Olick on the subject:

It didn't take much: A small gain in interest rates had an outsized effect on mortgage applications.

Total volume decreased 4.1% last week on a seasonally adjusted basis from the previous week, according to the Mortgage Bankers Association. Rates moved higher for the second week in a row.

Mortgage applications to purchase a home fell 2% from the previous week but are 14% higher than the same week one year ago.

Read more >