Mortgage applications declined last week, despite the lowest interest rates in three months, the Mortgage Bankers Association reported.

Mortgage loan volume slipped 1.9 percent on a seasonally adjusted basis compared to the previous week. On an unadjusted basis, the index decreased 1.7 percent.

The seasonally adjusted purchase index decreased 2.3 percent compared to the previous week, while the unadjusted purchase index declined 1.8 percent. The purchase index was 13.9 percent lower than the same week a year ago.

The best fixed-rate mortgages were below 5 percent:

  • 30-year fixed-rate mortgages decreased to 4.91 percent from 5.01 percent.
  • 15-year fixed-rate mortgages decreased to 4.24 percent from 4.32 percent.
  • 1-year ARMs decreased to 6.75 percent from 6.80 percent.

Source: Mortgage Bankers Association