Mortgage applications increased 2.7 percent last week

Refinancing represented an 82.9 percent share of all loan applications, up from to 82.4 percent the previous week and the highest refinance share since January 2009. 

Despite record-low mortgage rates, Fratantoni expressed concern about the low level of purchase applications, showing homebuyers are still hesitant to make purchases in the weak economy. 

The numbers indicate that “we are unlikely to see an increase in new home sales reported for August or existing home sales reported for September,” he said. 

The average interest rate for 30-year fixed-rate mortgages decreased to 4.43 percent from 4.55 percent, while the average 15-year loan was down to 3.88 percent from 3.91 percent the previous week.