US mortgage applications see mighty fall this week

US mortgage applications have fallen by a staggering 11.7 per cent in the week to 28 June, according to the Mortgage Bankers Association. That's the greatest drop they've seen this year.

Expectations that the Fed could taper quantiative easing - slowing the rate of expansion of the monetary base - has pushed mortgage rates higher. The MBA 30 year fixed mortgage rate has hit 4.58 per cent (a July 2011 high).

This figure is considered a leader indicator of the US housing market, and follows a previous fall of three per cent.