Mortgage application was push down to the lowest level since mid-March as propelled by a dip in requests to refinance loans amid near record-low borrowing costs last week according to Mortgage Bankers Association.

The Mortgage Bankers Association reported that its applications index fell 8.6 percent to a seasonally adjusted 895.6 last week. The index covers both purchase and refinance loans.

Purchase applications increased slightly by 0.5 percent to 265.7 in the week ended May 8 as U.S. housing market continues to be in its deepest slump since the Great Depression. The last time purchase applications were higher was in the first week of April.

Refinance applications fell 11.2 percent to 4,588.6, the lowest recorded since mid-February. The average 30-year mortgage rate fell 0.03 percentage point to 4.76 percent and close to the low of 4.61 percent set in late March. A year ago, the rate was 5.82 percent which is more than a percentage point higher.

Of the applications last meek, 72 percent were refinancings.