Mortgage applications to purchase homes fell to the lowest level since December 1996, decreasing 3.1 percent last week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly report.

On an unadjusted basis, the purchase index declined 12.7 percent compared to the previous week and was down 43 percent compared to the week of July 4th in 2009.

Interest rates were up slightly, though they remain very low:

• 30-year fixed-rate mortgages increased to 4.69 percent from 4.68 percent.
• 15-year fixed-rate mortgages increased to 4.12 percent from 4.11 percent.
• 1-year ARMs remained unchanged at 7.20 percent.

Source: Mortgage Bankers Association