During last week, mortgage applications across US recorded a decline for the first time in almost a month, on the back of weak purchases and refinancing.

As confirmed by the Mortgage Bankers Association, its index of loan applications managed to fall by 11% to 595.8 points for the week up-to December 18, which has been the lowest level recorded since October. Last week's index reading stood at 667.3.

The refinancing gauge of the group also slipped by 10%, and purchases, on the other hand, recorded a drop for the second consecutive week.

Mortgage rates for the current times are at an all time low, giving households even less reasons to cut back on monthly payments.

Despite the fall in loan applications, reports released this week have pointed to an overall improved condition in the country's housing sector. Existing home sales surged by a much-better-than expected rate over the past month, and a measure of home prices has also managed to record a rise for the first time in three months for October.

"The housing market is coming back", Christopher Low, Chief Economist at FTN Financial in New York, said. Experts are of the opinion that the fall in mortgage applications could merely be a seasonal effect.