Mortgage applications fell sharply last week as mortgage rates pushed higher.

The volume of mortgage loan applications decreased 14.4% on a seasonally adjusted basis in the week ending Nov. 12, the Mortgage Bankers Association said early Wednesday.

Refinancing applications decreased 16.5% from the previous week to the lowest level observed since July. New-home purchase loan applications decreased 5% week-over-week, the first decrease after three consecutive weekly increases.

"Rates increased sharply last week due to stronger economic data and lingering uncertainty regarding the structure and impact of the Fed's QE2 program," said Michael Fratantoni, MBA's Vice President of Research and Economics. "Mortgage applications, particularly for refinances, dropped in response."