Mortgage applications measured by the the Mortgage Bankers Association's Market Composite Index fell 2.4% last week from a week earlier, the group said Wednesday.

The decline came despite a drop in the average contract interest rate for 30-year fixed-rate FHA mortgages to its lowest level since May 2013, 3.61%, from 3.71%, with points increasing to 0.27 from 0.23 (including the origination fee) for 80% LTV loans.

The previous week's results included an adjustment for the Memorial Day holiday. Unadjusted, the Index increased 21% compared with the previous week. The Refinance Index decreased 1%, the seasonally adjusted Purchase Index decreased 5% from one week earlier, both from the week earlier. The unadjusted Purchase Index increased 17% compared with the previous week and was 16% higher than the same week one year ago.

The refinance share of mortgage activity increased to 55.3% from 53.8% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.3%.

The FHA share of total applications decreased to 11.8% from 13.0%t the week prior. The VA share dropped to 11.1% from 11.5% and USDA share decreased to 0.6% from 0.7% the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since January 2015, 3.79 percent, from 3.83 percent, with points decreasing to 0.32 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to its lowest level since May 2016, 3.75%, from 3.81%, with points increasing to 0.26 from 0.25 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to its lowest level since May 2016, 3.06%, from 3.11%, with points decreasing to 0.34 from 0.35 (including the origination fee). The average contract interest rate for 5/1 ARMs decreased to its lowest level since May 2015, 2.87%, from 2.96%, with points decreasing to 0.26 from 0.29 (including the origination fee) for 80 percent LTV loans.