After hitting a three-year high during the end of September, refinance activity dropped off in the week ending October 5, which helped slow mortgage application volume, according to the Mortgage Bankers Association.
MBA's Weekly Applications Survey showed a 1.4 percent decline in loan volume from the previous week. The Refinance Index fell 2 percent, while the Purchase Index was up 3 percent.
Despite the slight drop in refinance activity, the refi share of all applications remained unchanged at 83 percent.
"Refinance applications declined somewhat last week although volume is still near three-year highs, and purchase applications increased to the highest level since June, with both conventional and government volumes increasing," said Mike Fratantoni, MBA’s vice president of research and economics.
Fratantoni added that mortgage rates still remain at all-time lows, which provide homebuyers and borrowers looking to refinance with ideal conditions.
Many have been unable to obtain financing at record-low rates for numerous reasons such as low credit scores or income and tight lending restrictions.