Mortgage applications fell 4.7% from a week earlier on a seasonally adjusted basis, according to the Mortgage Bankers Association's weekly survey.
The MBA's Market Composite Index fell 5% on an unadjusted basis, for the week ending June 26.
Refinance application volume fell by 5% to its lowest level since December 2014, while purchase apps dropped 4% on a seasonally adjusted basis and 5% on an unadjusted basis. However, the Purchase Index was 14% higher than the same week a year ago.
Refinancings, as a percentage of all mortgage activity, fell to 48.9% of total applications from 49%.
The average contract interest rate for 30-year conforming ($417,000 or less) fixed-rate mortgages rose to 4.26% from 4.19%, the highest since October 2014. The 30-year jumbo FRM interest rate rose to 4.21% from 4.14%; that's also the highest since October 2014.
The MBA's weekly survey measures mortgage-loan application volume, based on 75% of all U.S. retail residential mortgage applications. The survey's respondents include mortgage bankers, commercial banks and thrifts.
