Even though refinance business slowed to the lowest level since the turn of the century, a surge in loan applications for purchase financing drove overall activity up.

After making adjustments for the Fourth of July holiday, the Market Composite Index for the week that concluded on July 6 moved up 2.5 percent from one week previous.

But when seasonal factors are disregarded, the index — a measure of retail residential loan application volume — plunged 18 percent from the week ended June 29.

Source: Mortgage Daily