A report released by the Mortgage Bankers Association on Wednesday showed an extended pullback by mortgage applications in the week ended March 22nd.

The MBA said the Market Composite Index, a measure of mortgage loan application volume, fell by 0.7 percent last week after slumping by 1.6 percent in the previous week.

The Refinance Index led the way lower once again, slumping by 2 percent from the previous week, while the Purchase Index dipped 0.2 percent from one week earlier.

“Mortgage application activity was muted last week despite slightly lower mortgage rates,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The 30-year fixed rate edged lower to 6.93 percent, but that was not enough to stimulate borrower demand.”

He added, “Lower rates should help to free up additional inventory as the lock-in effect is reduced, but we expect that will only take place gradually, as we forecast that rates will move toward 6-percent by the end of the year.”

The MBA also said the refinance share of mortgage activity decreased to 30.8 percent of total applications from 31.2 percent in the previous week. The adjustable-rate mortgage share of activity also decreased to 7.0 percent of total applications.