Mortgage applications dropped 3.8 percent in the week that ended Wednesday despite record low interest rates, the Mortgage Bankers Association reported.

Refinance applications also declined, by 5.6 percent, but still accounted for 73.4 percent of total applications. More than half of the refis were at fixed interest rates, which stood at 4.04 percent, the lenders' group reported.

— Alan J. Heavens