Figures released by the Mortgage Bankers Association trade body showed rates have now risen to their highest level since October 2014.

This impacted the number of people applying for loans, with all mortgage application activity down 4.7% compared to the previous week.

It said applications for refinancing were down 5.2% and at their lowest level since December 2014.

Applications for home purchases were also down, falling 4.1%. This indicates that the number of homes sold has also fallen, the firm said.

A 30-year fixed rate loan – the typical mortgage length in the Unites States – rose seven basis points week-on-week. Average mortgage rates are now 4.26%, compared to 4.19% a week earlier.

The Mortgage Bankers Association covers 75 percent all residential mortgage applications in the US.