Applications for mortgages to buy homes dipped 3.3% last week, and applications to refinance fell 7.5%, the Mortgage Bankers Association said.

Refinancing activity accounted for 45.2% of total applications, down 0.6% from the previous week, according to the seasonally adjusted survey.

David Lereah, chief economist of the association, said it was surprising that homebuying had declined though interest rates have stayed so low.

But he warned against concluding that the mortgage market was cooling.

"This is a very, very hot market, and it continues to boom," he said. "Mortgage rates are at cyclical lows right now. Consumers have a very healthy appetite for homebuying, and they're taking out mortgage applications at a very healthy pace."

- Joshua Brockman

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.