The Mortgage Bankers Association, a trade group of real estate financiers, reported in its weekly application survey a decline in mortgage rates applications by 15.3 percent during the week ending May 30.

The MBA's application index fell to 502.3 during the week, from 593.3 the previous week. Adjustments on the results were made to account for the Memorial Day holiday.

Refinance volume declined 25.7 percent, pushing total volume lower. Of the total applications, refinance applications represents 40.6%, down from 46.1% a week earlier.

The index peaked at 1,856.7 at the height of the housing boom during the week ended May 30, 2003.

An index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA began tracking volume of application data. A reading of 502.3 means mortgage application activity is 5.023 times higher than it was during the start.

The survey provides a picture of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about 50% of all residential retail mortgage originations each week.

Application volume declined as interest rates climbed. The average interest rate for traditional, 30-year fixed-rate mortgages increased to 6.17% from 5.96% a week earlier.

Rates for 15-year fixed-rate mortgages - a popular option for refinancing a home - averaged 5.7% during the week ending May 30, compared with 5.49% the previous week.

The average interest rate for one-year adjustable-rate mortgages fell to 6.8% from 6.92%.