Record-low mortgage rates couldn't help boost application volume, as the Mortgage Bankers Association reported a slight decline in activity for the week ending September 14.
The Market Composite Index, a measure of loan application volume, dropped 0.2 percent on a seasonally adjusted basis from the previous week. Originations dipped significantly, as the Purchase Index decline 4 percent from a week earlier.
Refinance activity was increase, though, as the Refinance Index was up 1 percent from a week earlier. The refinance share of mortgage activity jumped a percentage point to 81 percent of total applications, while HARP 2.0 refis accounted for 22 percent of all applications during the week.
Despite drops in mortgage rates for the past few weeks, many borrowers have been forced out of the market, as banks have tightened their lending standards. Poor credit histories have held many Americans out of the home buying market, as they can't qualify for a mortgage under the tightened standards, while some have chosen to stay out with the economy still in a state of uncertainty.