Refinance applications took the biggest hit, falling 15 percent from the previous week. This brought the refinance share of all applications from 71 percent to 68 percent - the lowest level since July 2011.
Meanwhile, purchase requests were down as well, dropping 2 percent from a week earlier.
Activity in the mortgage market has been down as rates increased for the fourth straight week to end May. Freddie Mac's latest Primary Mortgage Market Survey revealed both 15- and 30-year fixed-rate mortgages saw averages breach those from a year ago in the week ending May 30.
Frank Nothaft, vice president and chief economist at Freddie Mac, said rates followed Treasury-bond yields higher and were also pushed up by the improving economy.