Mortgage apps dropped 0.4 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending June 3, 2011. This week's results include an adjustment to account for the Memorial Day holiday. The Market Composite Index, a measure of mortgage loan application volume, decreased 0.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 11 percent compared with the previous week. The seasonally adjusted Purchase Index decreased 4.4 percent from one week earlier. The unadjusted Purchase Index decreased 15.2 percent compared with the previous week and was 9.0 percent higher than the same week one year ago. The adjusted Refinance Index increased 1.3 percent from the previous week. The Refinance Index is not seasonally adjusted but is adjusted for the holiday. The four week moving average for the seasonally adjusted Market Index is up 1.0 percent. The four week moving average is down 1.6 percent for the seasonally adjusted Purchase Index, while this average is up 2.1 percent for the Refinance Index. The refinance share of mortgage activity increased to 67.3 percent of total applications from 65.7 percent the previous week. This is the highest refinance share since January 28, 2011. The adjustable-rate mortgage (ARM) share of activity decreased to 6.1 percent from 6.2 percent of total applications from the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.54 percent from 4.58 percent, with points decreasing to 0.95 from 1.00 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the lowest 30-year contract rate since Nov. 19, 2010. The effective rate also decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.67 percent from 3.78 percent, with points decreasing to 1.06 from 1.07 (including the origination fee) for 80 percent LTV loans. This is the lowest 15-year contract rate since Oct. 22, 2010. The effective rate also decreased from last week.