Applications for purchase-money mortgages accelerated during the holiday week. But a plunge in refinance applications to the lowest level in more than 17 years dragged down overall activity.

A seasonally adjusted 1.8 percent reduction from the preceding seven-day period was recorded for the Market Composite Index for the week ended Sept. 7. The index is a measure of retail residential loan application volume.

But when seasonal factors are not considered, mortgage applications during the week that included Labor Day plummeted 13 percent from the week ended Aug. 31.

Source: Mortgage Daily