Mortgage applications dropped a seasonally adjusted 6.5 percent last week compared to the week prior, the Mortgage Bankers Association reports.

Refinance activity dropped 6.5 percent, and purchasing applications dropped 6.1 percent for the week.

Mortgage applications dropped despite a fall in mortgage rates last week. The 30-year fixed rate mortgages averaged 4.84 percent last week, coming down from 5 percent the week prior.

Source: “U.S. Mortgage Application Volume Fell Last Week,” Mortgage Bankers Association (March 2, 2011)