Mortgage applications for home purchases fell nearly 4 percent in the week ending Feb. 21 from the week prior, hitting their lowest level since 1995, the Mortgage Bankers Association reports. Last week's purchase applications, which are viewed as a strong determinant of future home sales, were down about 15 percent from the same week in 2013, according to MBA. 

"This is the time of year we would expect a significant pickup in purchase activity, and we are not yet seeing it," says Mike Fratantoni, MBA's chief economist. 

Overall, MBA's index of mortgage application activity — including home purchases and refinances — dropped 8.5 percent last week. MBA's Refinancing Index dropped 11.4 percent last week, with refinance applications down 3 percent last week from the week prior. 

MBA also reports that average 30-year fixed-rate mortgage rates rose to 4.53 percent last week from 4.5 percent the week before. That's the highest reading since the week ending Jan. 17.

Source: Mortgage Daily News & Reuters