Despite record low mortgage rates, refinance activity across the country dropped last week, according to the Mortgage Bankers Association’s latest survey.

The MBA’s Refinance Index, part of its Weekly Mortgage Applications Survey, showed that refinance activity for the week ending July 30 decreased 7 percent from the previous week but was 84 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 63.9 percent of total applications from 65.1 percent the previous week.

“Mortgage rates dropped to another record low last week, falling below the previous record set three weeks ago to 3.14 percent. Refinance activity decreased – despite the decline in rates – but the current pace remains more than 80 percent higher than a year ago when rates were over 4 percent,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement. “MBA’s forecast calls for rates to remain at these low levels, which will continue to spur strong refinance activity and offer homeowners relief in the form of lower monthly mortgage payments during these uncertain economic times.”

The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. The previous week’s index had included an adjustment for the July 4 holiday. The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 22 percent higher than the same week one year ago.

“Purchase applications also fell slightly, but were still 20 percent higher than a year ago and have now risen year-over-year for 11 straight weeks,” Kan said. “Purchase loan balances continued to climb, which is perhaps a sign that the still-weak job market and tighter credit for government loans are constraining some first-time homebuyers.”

Overall, the Market Composite Index, a measure of mortgage loan application volume, decreased 5.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5 percent compared with the previous week.