Refinancing down 25%

The MBA said refinancing applications declined last week. Its seasonally adjusted index of refinancing applications fell 2.4 percent to 1,489.4, from 1,526.1 the previous week.

A year earlier the index was at 2,052.5.

The refinance share of mortgage activity increased to 36.7 percent of total applications from 36.4 the previous week.

The ARM share of activity fell to 28.2 percent of total applications from 28.9 percent the previous week. ARM demand reached a 2005 high of 36.6 percent in late March, and some ARM holders are seen leaning toward refinancing into fixed-rate loans.

Fixed 15-year mortgage rates averaged 6.18 percent last week, down from 6.19 percent. Rates on one-year adjustable-rate mortgages fell to 5.96 percent from 6.00 percent.

The MBA’s survey covers about 50 percent of all U.S. retail residential mortgage originations. Respondents include mortgage bankers, commercial banks and thrifts.