According to the latest figures released, the total mortgage applications filed in the US during the previous week recorded a fall of 23 per cent compared to the previous week as the interest rates continued to climb.

The Mortgage Bankers Association said on Wednesday that the market composite index fell 4 per cent from the previous week on a seasonally-adjusted basis including the July 4 holiday in the US. The weekly survey includes more than three-quarters of all residential mortgage applications in the US showed that the refinance index fell 4 per cent from the previous week and the seasonally adjusted purchasing index fell 3 per cent from the previous week.

The Mortgage Bankers Association said that the mortgage rates measures by it rose significantly and this would affect refinance activity. It noted that the number of refinance applications fell to its lowest level in two years. The latest data showed that the mortgage rates in the US rose to its highest level in a period of three decades on concerns that the Federal Reserve will soon begin rolling back to stimulus package for the US economy. Experts have said that the higher mortgage rates in the US are pushing buyers away from the market in the short term bowers will be required to pay higher interest rates.

The Federal Reserve officials are trying to calm the situation by convincing investors that the Federal Reserve will not suddenly withdraw stimulus package that has helped the US economy survive the financial crisis by keeping the borrowing costs low.