Overall mortgage applications dropped last week, going down 7.2 percent on a seasonally adjusted basis from the week before, according to the Mortgage Bankers Association’s weekly survey.

“Mortgage application volume is down 7.2 percent from the previous week, with applications for adjustable-rate products experiencing an even steeper decline of 15.8 percent,” said Michael Cevarr, MBA’s director of member surveys, in a statement.

As a result, Cevarr said, the ARM share of applications, at 27.9 percent, is at its lowest level since March of 2004.

The MBA seasonally adjusted purchase index went down by 6.1 percent to 489 from 520.8 the previous week. The seasonally adjusted refinance index decreased 8.4 percent to 2,554.3 from 2,788.2 one week earlier.

The refinance share of mortgage activity decreased to 45.1 percent of total applications, from 45.7 percent the previous week. The adjustable-rate-mortgage share of activity deceased to 27.9 percent of total applications, from 30.7 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 5.62 percent from 5.58 percent one week earlier. Points including the origination fee increased to 1.26 from 1.14 for 80 percent loan-to-value loans.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.21 percent from 5.18 percent one week earlier. Points including the origination fee increased to 1.28 from 1.13 for 80 percent loan-to-value loans.

The average contract interest rate for one-year adjustable-rate mortgages decreased to 4.56 percent, compared to 4.6 percent the previous week. Points including the origination fee increased to 1.01 from 0.97 for 80 percent loan-to-value loans.

Washington, D.C.-based Mortgage Bankers Association is a national association representing the real estate finance industry. The survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.

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