Mortgage applications dropped again last week, falling to the lowest level since December 2000, according to the Mortgage Bankers Association’s seasonally adjusted index of mortgage application activity, reported Wednesday. Total applications, including both refinancing and home purchase applications, dropped 5.9 percent to 333.2 for the week ending April 25, the lowest level since December 2000.

"Purchase application volume remains weak despite other data, which indicated the overall pace of economic growth is picking up,”says Michael Fratantoni, the MBA’s chief economist.“The combination of higher rates, new regulation, and tight inventory are all leading to a weaker spring market than we have seen in years.”

Applications for home purchases, viewed as a gauge for future home sales, fell 4.4 percent last week, while applications for refinancings dropped 6.9 percent, the MBA reported.

“Refinance activity continued to slide despite a 30-year fixed rate that was unchanged from the previous week,” says Fratantoni. “The refinance index dropped 7 percent to the lowest level since 2008, continuing the declining trend we have seen since May 2013.”

The 30-year fixed-rate mortgage averaged 4.49 percent last week, holding the same average as the previous week, the MBA reports.

Source: CNBC & Reuters