Mortgage application volume declined 6.2% during the week ending July 18 as rates rise for the 30- and 15-year fixed rate mortgages, while one year adjustable rate mortgages were just the same according to Mortgage Bankers Association’s weekly application survey.

The MBA's application index fell to 489.6 during the week, from the previous week’s reading of 522.2.

Refinance application volume dropped 5.6% while purchase volume declined 6.7%, on an adjusted basis. Refinance applications include 39.4% of all applications.

The index peaked at the height of the housing boom during the week ending May 30, 2003 at 1,856.7. The index was first used in 1990 when the MBA tracked the volume of application. During this time the index value was 100 meaning that the mortgage application is 4.896 times higher during the time the index was started.

The average rate for traditional, 30-year fixed-rate mortgages rose to 6.59% from 6.22% during the week ending July 11.

The average interest rate for 15-year fixed-rate mortgages - a popular option for refinancing a home - rose to 6.10% from 5.74%.

Rates for one-year adjustable-rate mortgages remained unchanged at 7.16% from the prior week.

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