Mortgage applications dropped 6.6% in the week ending Feb. 14 on a seasonally adjusted basis from the week prior, according to a survey by the Mortgage Bankers Association (MBA). On an unadjusted basis, the Market Composite Index decreased 4% compared with the previous week.

“Despite mortgage rates declining, … mortgage applications decreased to their slowest pace since the beginning of the year,” said Joel Kan, MBA’s vice president and deputy chief economist, in a statement.

The refinance share of mortgages — which had been growing in recent weeks — decreased to 38.7% of total applications from 40.2% the previous week.

“Purchase applications were down for the week, as buyers remained on the fence, although loosening inventory may help support activity in the coming months,” Kan said. “Refinance applications had been rising in previous weeks but dipped as rates remained close to 7%.”

The adjustable-rate mortgage (ARM) share of activity decreased to 5.4% of total applications. The Federal Housing Administration share of total applications increased to 16.6% from 16.0% the week prior.

The U.S. Department of Veterans Affairs share of total applications decreased to 14.2% from 14.6% the week prior. The U.S. Department of Agriculture share of total applications increased to 0.6% from 0.5% the week prior.