Applications for mortgage loans fell to the lowest level in almost a year, according to The Mortgage Bankers Association.? The seasonally adjusted index of mortgage applications revealed a decrease of 18.6%, which reflects the lowest level seen since the first week in January of 2010.

The seasonally adjusted index of refinancing applications also decreased, by a whopping 24.6%, reaching its lowest level since the end of April of this year.? These declines are said to be a result of the "lack of interest" in homeowners to refinance their existing loans as the mortgage rates continue to increase. As mortgage rates are closely tied in to long-term treasury bonds, the rise in US Treasury Yields has helped in pushing the mortgage rates up.

According to Michael Fratantoni, the Mortgage Bankers Association Vice President of Research and Economics, "Refinance application volume dropped sharply this week as mortgage rates held near six month highs."



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