Still, mortgage loan application volume decreased 0.8% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index.

The weakness continues to be in refinance demand, which dropped 13% from the previous week and was 86% lower than the same week one year ago.

Mortgage applications to purchase a home gained 4% from the previous week but demand was 41% lower than the same week one year ago.