According to The Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for a 30-year fixed-rate mortgage fell to 4.75 percent last week from 4.82 percent the week before. But despite the lowest rates since May 2009, refinancing activity dropped 7.3 percent and purchase applications decreased 1.2 percent. Cameron Findlay, chief economist at Lending Tree, said low purchase demand indicates home sales will continue to weaken. Findlay believes there will not be sustained improvement in the housing market until unemployment falls below nine percent. More here and here.