The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 5, 2010 reflecting a 1.2 percent drop on a seasonally adjusted basis. The purchase applications was 7.0 percent lower than the previous week while refinance applications increased 1.4 percent.

The refinance share of mortgage activity is up to 69.7 percent of total applications from 69.2 percent in the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 4.5 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate loan fell to 4.94 percent from 5.01 percent the previous week, with points increasing to 1.06 from 1.04 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The rate reached 4.61 percent at the end of March, the lowest since the 1990.

The average contract interest rate on a 15-year fixed mortgage was unchanged at 4.33 percent, with points decreasing to 0.95 from 1.17 for 80 percent LTV loan.

The rate on a one-year adjustable mortgage decreased to 6.68 percent last week from 6.70 percent with points increasing to 0.35 from 0.34 for 80 percent LTV loans.