According to the Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages with both conforming and jumbo balances fell again last week. Interest rates on 15-year fixed-rate and FHA-backed loans also declined. Average mortgage rates have been dropping recently and have now reached their lowest level in close to a year. Despite favorable rates, however, demand for mortgage applications was down last week. The Market Composite Index, which measures total mortgage application volume, was down 3.1 percent from the week before. The Purchase Index was down 4 percent and the Refinance Index dropped 3 percent. Still, the refinance share of total mortgage activity ticked up to 53 percent, which continues a gradual trend upward after falling below 50 percent last month. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.