According to CNBC, the average rate on a 30-year fixed mortgage rose 12 basis points from Monday to 7.30% on Tuesday, the largest one-day increase in more than a month. The rise followed a monthly inflation report that showed broader price pressures and came in hotter than expected. Matthew Graham, chief operating officer at Mortgage News Daily, said the inflation data carried more weight than the previous Friday’s employment report because the Federal Reserve had emphasized inflation over full employment, making the rate reaction logical.

Mortgage applications rose 6.2% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The weekly average rate on a 30-year fixed mortgage fell to 7.21% from 7.30%, marking a fourth straight weekly decline and its lowest level since mid-September. Refinance applications increased 5% for the week but were 57% below the same week one year ago; purchase applications rose 8% but were down 18% year over year.