Mortgage application volume declined 6.5% for the week ending Feb. 25 even though the average contract rate for a 30-year fixed-rate loan fell 16 basis points, according to figures released Wednesday morning by the Mortgage Bankers Association.
MBA said it did not adjust the results to take into account the Presidents' Day holiday.
The trade group's refinance index fell 6.5%, while the seasonally adjusted purchase application index declined 6.1%. (All the comparison is to the week prior.)
Refinance applications fell to 64.9% of new business, from 65.7% one week prior, making it five out of the past six weeks refis have dropped. MBA tracks activity through its proprietary application index.
The average interest rate for a 30-year FRM fell 16 basis points to 4.84%, with points increasing to 1.30 from 0.96 (including the origination fee) for 80% LTV mortgages.
The average contract rate for a 15-year FRM decreased to 4.17% from 4.28%. Points increased from 0.80 to 1.07.
