Mortgage rates saw an increase for the week ending July 20, partly due to the CPI figures for June. The figures indicated that inflation could still be a threat to the economy.

However, in a speech on Wednesday, Federal Reserve Chairman Ben Bernanke said that another rise in overnight lending rates might not be set in stone.

Most markets were relieved, which could be seen in next week's mortgage rates.

Frank Nothaft, Freddie Mac chief economist, said that he expects next week's report to be different.

"Financial markets were a bit jittery after core Consumer Price Index figures for June were released that indicated inflation might still be a potential threat," said Nothaft. "Fed Chief Bernanke, in his semi-annual speech to Congress, hinted that another rise in overnight lending rates might not be imminent and financial markets breathed a collective sign of relief, which should be reflected in the results of next week's survey."

The 30-year fixed-rate mortgage was up to 6.80% for the week, up from 6.74%. One year ago, the 30-year averaged 5.73%. The current rate is the highest since May of 2002.

The 15-year fixed-rate mortgage was also up, at 6.41%, up from 6.47% the week prior. The 15-year averaged a rate of 5.32% one year ago.

The 5-year hybrid ARM averaged 6.36%, up from 6.33%. The one-year ARM was also up, at 5.80% for the week, upfrom 5.75% the week prior. One year ago, the hybrid averaged 5.26%, while the one-year averaged 4.42%.

The increase comes after a drop in mortgage rates last week. Rising interest rates have helped in the cooling of the housing market.

The 30-year fixed and the 5-year ARM had 0.5 points to obtain the average interest rate. The 15-year had a 0.4 point fee, while the one-year ARM required an average 0.6 point.

The MBA also recently reported a seasonally adjusted decrease of 4.6% in mortgage loan application volume for the week.