According to The Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages fell to 4.32 percent after rising to 4.39 percent the week before. At 4.32 percent, mortgage rates are now back to their lowest level of the year. Despite the rate drop, the Market Composite Index, which measures total mortgage loan application volume, decreased 9.6 percent due to slowing refinance activity following a recent surge. The Purchase Index, however, increased 0.9 percent. Michael Fratantoni, MBA’s vice president of research and economics, said refinance activity declined despite mortgage rates near a 10-month low. More here and here.