Overall mortgage applications dropped 5.8 percent last week on a seasonally adjusted basis from the previous week, with refinancings taking the brunt of the decrease, according to the Mortgage Bankers Association’s weekly survey.

The MBA seasonally adjusted refinance index dropped by 11.4 percent to 2,320.3 from 2,618.2 one week earlier. The seasonally adjusted purchase index decreased by 0.7 percent to 485.1 from 488.7 the previous week.

The refinance share of mortgage activity decreased to 42.9 percent of total applications from 45.7 percent the previous week. The adjustable-rate-mortgage share of activity increased to 29.4 percent of total applications from 28.5 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages remained at 5.72 percent, with points including the origination fees increasing to 1.31 from 1.14 for 80 percent loan-to-value ratio loans.  

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.32 percent from 5.28 percent one week earlier. Points including the origination fee decreased to 1.25 from 1.26 for 80 percent loan-to-value ratio loans.

The average contract interest rate for one-year ARMs increased to 4.7 percent from 4.63 percent one week earlier. Points including the origination fee decreased to 0.98 from 0.99 for 80 percent loan-to-value ratio 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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