Mortgage rates remained below 5% for the second week in a row, yet the low rates fail to spur increased appetite for refinancing, new loans, or purchases, an industry survey said Wednesday. 

The Mortgage Bankers Association said the average rate for a 30-year mortgage fell three basis points to 4.94% in the week ending September 25 ― the lowest rate since early May. Yet, even with the $8,000 tax credit for first-time home purchasers expiring soon, loan applications decreased by 2.8% in the week.

Compared to the same period one year ago, application volume is down 44.3%; however, the year-to-year comparison in last week’s survey said the index had improved 14%, indicating that demand was volatile last year.

To smooth out the irregular performance of the index, analysts look to the 4-week average, which is currently up 3.9%.

A decline in the Purchases index was the primary driver in the decline. Purchases fell 6.2% in the week, pushing the 4-week average to -0.6%.

Refinances, which accounted for 65.3% of all loans, were fairly steady as they fell just 0.8% in the week.

Yesterday, a report from said mortgage rates are below 5.20% in all 50 states. Lenders in Texas offer the lowest rates with an average of 4.95%, while rates in Illionois are currently the highest at 5.20%.

Here is a long term look at the movement of mortgage rates...