The number of applications filed for home purchases last week was the lowest seen since December 2000, the Mortgage Bankers Association reported Thursday. The slump comes despite favorable mortgage interest rates, which are still averaging well below the 5 percent threshold.

On a week-to-week basis, purchase activity declined 11.7 percent, according to MBA’s Weekly Mortgage Applications Survey. Compared to this time last year, purchase applications are down 21.6 percent.

Refinancings, on the other hand, continue to rise, as distressed homeowners seek more sustainable mortgage terms and lower monthly payments. MBA reported that petitions for home loan refinancing jumped 11.3 percent last week compared to the week prior, and claimed 71.5 percent of total applications. The refinance share of activity is the highest since May of this year, when the 30-year fixed-rate mortgage rate was a near-record-low of 4.7 percent.

The strong demand for refinancings helped push total mortgage application volume up 3.2 percent for the week ending November 6, MBA said.

According to the trade group’s survey, the average contract interest rate last week for 30-year fixed-rate mortgages decreased to 4.90 percent from 4.97 percent – the lowest it’s been since May of this year.

The average rate for 15-year fixed-rate mortgages remained unchanged at 4.33 percent.