Mortgage applications dropped 1.2% in the week ended Oct. 5, according to data from the Mortgage Bankers Association's weekly mortgage applications survey, as refinances declined 2% and purchases were up 2%.

"Refinance applications declined somewhat last week although volume is still near three-year highs, and purchase applications increased to the highest level since June, with both conventional and government volumes increasing," said Mike Fratantoni, MBA's vice president of research and economics. "Rates on 30-year fixed-rate loans remain historically low, benefitting both prospective homebuyers and those seeking to refinance."

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