Mortgage applications nationwide decreased 4 percent from one week earlier, according to the Mortgage Bankers Association’s (MBA) weekly survey ending May 27.

The refinance index decreased 5.7 percent from the previous week and the purchase index was essentially unchanged, according to a statement.

"Interest rates fell last week as incoming economic data was weaker than anticipated," said Mike Fratantoni, MBA vice president of research and economics. "Despite this drop in rates, the number of refinance applications fell. In fact, the last time mortgage rates were this low, refinance volume was more than 20 percent higher. It is likely that many borrowers still cannot qualify to refinance given the lack of equity in their homes."