The volume of mortgage applications slid last week to its weakest level in more than five months, as demand for loans to buy homes eroded amid escalating credit concerns, Reuters reported.

The Mortgage Bankers Association announced this morning that its seasonally adjusted index of mortgage applications dipped 0.3 percent in the week ended July 27 to 607.1, slightly above the 606.6 reading in the week of Feb. 16.

The MBA’s purchase index fell 1.8 percent to a seasonally adjusted 416.6 last week. The last time the index was lower was in the week ended April 20, when it dropped to 411.0.

Average 30-year mortgage rates, excluding fees, fell 0.09 percent in the week to 6.50 percent, helping drive up loan requests for mortgage refinancing last week.

Mortgage companies have been hit hard by the housing troubles, with American Home Mortgage Investment Corp. recently indicating it may have to liquidate because it cannot pay its debts.