Applications for mortgages are dropping as mortgage interest rates keep rising while home sellers are lowering their prices as additional supply hits the market, according to multiple reports. The interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) was 4.90 percent in the week ending April 1, up from 4.80 percent a week ago, an April 6 news release by the Mortgage Bankers Association (MBA) stated. Rates for those with loan balances greater than $647,200 rose to 4.51 percent from 4.40 percent while 30-year fixed mortgages backed by the FHA saw interest rates rise from 4.66 percent to 4.90 percent. Mortgage application loan volume fell by 6 percent from the earlier week on an unadjusted basis. When compared to the same week a year back, volume is down by 41 percent. “As higher rates reduce the incentive to refinance, application volume dropped to its lowest level …