High mortgage rates, plummeting home values lead to less mortgage activity

The MBA's mortgage application index fell nearly 10% last week driven down by the highest interest rates in a year.  High rates, coupled with declining property values and tighter underwriting guidelines continue to put pressure on the mortgage market. From Bloomberg: Mortgage applications in the U.S. declined last week, led by a slump in refinancing as borrowing costs surged. The Mortgage Bankers Association's index of applications to purchase a home or refinance a loan fell 8.8 percent to 507.9 from 557.1 the prior week. The index reached a six-year low of 502.3 last month. The group's purchase index decreased 4.4 percent and its refinancing gauge lost 15 percent. Prospective buyers are holding off as rising foreclosures add to the glut of properties on the market and force home val