Mortgage applications dropped 2.1% in the week ended July 6, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The results include an adjustment for the Fourth of July holiday.

The refinance index fell 3% and the seasonally adjusted purchase index rose 3%.

Refinances accounted for 77% of volume, while adjustable-rate mortgages remained around 4% of applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) fell to a record low 3.79% from 3.86%.

The average 15-year fixed-rate mortgage slipped to a record low 3.15% from 3.20%.

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