CNBC's Diana Olick takes a look at the latest weekly mortgage count from the Mortgage Bankers Association which showed a 3.5% decrease in total mortgage applications. 

Purchase and re-finance applications both fell week-over-week on a seasonally-adjusted weekly basis last week. However purchase volume last week was 23% higher than it was during same week in the previous year.

While mortgage rates have inched higher, they will not necessarily be affected by an interest rate hike: 

The Federal Reserve is not expected to announce any change in interest rates following its two-day meeting Wednesday. Even when the Fed finally does make a move, it is entirely possible mortgage rates will not follow in step.

"It's really that broader, global economic trend that will do most to dictate longer-term rates like mortgages. After all, that's the entire reason rates are as low as they are despite the ever-increasing sense of the Fed's rate hike intentions," wrote Matthew Graham, chief operating officer of Mortgage News Daily.

Head over to CNBC to learn more about the week to week decline in mortgage application rates:

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