Read more: What caused mortgage applications to drop this week?

Joel Kan, associate vice president of economic and industry forecasting at MBA, noted that applications fell despite little change in mortgage rates.

“There was little change in mortgage rates last week, with the 30-year fixed remaining at 3.03%,” said Kan. “Despite low rates, refinance applications declined, with some borrowers still waiting for rates to drop even lower. Recent uncertainty around the economy and pandemic have kept rates low over the past month, which is why the refinance index has oscillated around these levels.”

Broken down, the refinance share of mortgage activity decreased to 66.8% of total applications from 67.3% the previous week, while the adjustable-rate mortgage (ARM) share of activity increased to 3.2% of total applications.

Meanwhile, the FHA share of total applications increased to 11.2% from 11.0%, while the VA share of total applications decreased to 9.7% from 10.0%.