According to the Mortgage Bankers Association (MBA) report, mortgage applications dropped by 7.3%, applications for refinancing dropped 8% and the purchase index fell 4%.

The Wall Street Journal reports that Low interest rates have attracted new buyers and persuaded many home owners to refinance their mortgages, however, tightened credit restrictions still bar many borrowers from filing loan applications.

Further reports by the MBA state that the average rate on a 30-year fixed rate mortgage rose to 3.67% from 3.59% the week before.