The number of mortgage applications for the week ending May 10 dropped 7.3 percent from a week earlier, the Mortgage Bankers Association announced today. The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances has been falling for seven weeks in a row. But for that week, it increased to 3.67 percent from 3.59 percent, at $417,500 or less. Points increased to 0.41 from 0.33, including the origination fee, for 80 percent loan-to-value ratio loans. This rate is at its highest level since the week ending April 12. The effective rate increased from last week, the association said.

On a seasonally unadjusted basis, the Market Composite Index or the mortgage loan application volume decreased 7 percent over a week. The Refinance Index fell 8 percent in that span of time as well.

The refinance share of mortgage activity held steady, with 76 percent of total applications from the previous week. The adjustable-rate mortgage share of activity remained constant at 4 percent of total applications, the report said. – Mark Maurer