The weekly release of the MBA Mortgage Applications index showed new filings for loans decreased for the fourth consecutive time. The index dropped another 15.8% for the week ended June 12, following on the heels of a 7.2% decline in the previous week and two double-digit percentage drops prior to that. Applications for purchases snapped three weeks of advance with a contraction of 3.5% while refinancing tumbled sharply for the fourth week at 23.3%. Home owners have been more reluctant to refinance home loans as rates have seen a significant rebound in recent months as economic conditions improved and demand for Treasuries slowed. The benchmark 10-year note peaked at over four percent last Wednesday before closing at 3.945%. Since then, the yield has softened to 3.6588% as of Tuesday’s close, the lowest since June 4. Consequently, mortgage rates remain high but have fallen slightly in the previous week. The 30-year fixed rate declined to 5.50% from 5.57% while the 15-year dipped to 4.99% from 5.10% in the prior week. The adjustable rate 1-year loan saw a large fall as well to 6.54% from 6.75%. Looking ahead, traders will be keen to watch stabilization in mortgage rates and improving applications as a sign of improvement in housing. Should the rates continue to rise alongside the 10-year Treasury bond yield, applications are likely to continue falling and lead to further risk in housing markets.