The volume of mortgage applications in the US rose by 1.1% from the previous week in the period ending June 20th, trimming the 2.6% drop in the earlier period, according to data compiled by the Mortgage Bankers Association. The slight increase took place despite a 4bps increase in benchmark mortgage rates, as worries over higher energy prices and unsustainable fiscal spending supported yields of longer asset backed securities. The volume of applications for contracts to refinance a mortgage, which are more sensitive to short-term changes in interest rates, rose by 3%. In the meantime, applications for a mortgage to buy a new home were loosely unchanged.