Rewriting Specific URL to Subfolder

I have a single site hosting multiple applications. I want to simplify the URL's for customers from webapp.domain.com/application1 or webapp.domain.com/application2 to test1.domain.com, and test2.domain.com. I have added bindings for test1.domain.com and test2.domain.com. I need to redirect or rewrite these url's to subfolders within the site. I cannot for the life of me get this to work.

Here is what I hvae been trying to get to work.

<rule name="test1" stopProcessing="true">
<match url="^test1.domain.com$" />
<action type="Redirect" url="http://test1.domain.com/test1" />
</rule>
<rule name="test2" stopProcessing="true">
<match url="^test2.domain.com$" />
<action type="Redirect" url="http://test2.domain.com/test2" />
</rule>