U.S. mortgage applications fell for the fourth consecutive week, plunging to a seven-month low last week as demand for home refinancing loans tumbled 30%, data from an industry group showed Wednesday.

The Mortgage Bankers Association reported that its seasonally adjusted index of mortgage applications for the week ended June 26 decreased 18.9 percent to 444.8, the lowest reading since the week ended November 21, 2008. This is includes both purchase and refinance loans.

The increase in mortgage rates in the past weeks had dampened the demand, particularly for home loan refinancing. But it is seen that applications may improve as the rates declined last week.

The 30-year fixed-rate mortgages excluding fees averaged 5.34 percent down 0.10 percentage point from the previous week but still way higher than record low of 4.61 percent set in the week ended March 27.

Interest rates remained above 5 percent for a fifth straight week but still well below last year’s levels of 6.33 percent.

Treasury yields, which is linked to mortgage rates increased sharply last week. The decline in treasury yields has allowed rates to fall.

The mortgage bankers’ seasonally adjusted purchase index plunged 4.5 percent to 267.7. The four-week moving average of mortgage applications was down 9.2 percent.

The MBA's seasonally adjusted index of refinancing applications fell 30 percent to 1,482.2, another seven-month record low.

Refinance applications cover 46.4 percent of applications, down from 54 percent in the prior week and significantly lower than the peak of 85.3 percent set early this year in the week ended January 9.

Fixed 15-year mortgage rates averaged 4.81 percent, falling from 4.93 percent in the previous week.

Rates on one-year ARMs fell to 6.52 percent from 6.54 percent.