The Mortgage Bankers Association's report on mortgage activity for the week of July 23 showed a seasonally adjusted decline of 4.4% in its Market Composite Index, a measure of mortgage loan application volume, but an increase in purchase-only loans.

The Refinance Index decreased 5.9% from the previous week. The seasonally adjusted Purchase Index increased 2.0% to its highest level since the end of June. The unadjusted Purchase Index increased 2.4 % compared with the previous week and was 34.3% lower than the same week in 2009.

The four week moving average for the seasonally adjusted Market Index is up 1.6. The four week moving average is flat for the seasonally adjusted Purchase Index, while this average is up 2.0% for the Refinance Index.

The average rate for 30-year fixed-rate mortgages increased to 4.69% from 4.59%, with points decreasing to 0.88 from 1.04. The rate for 15-year fixed-rate mortgages increased to 4.12% from 4.05%, with points decreasing to 0.83 from 0.88. The average rate for one-year ARMs decreased to 7.15% percent from 7.17%, with points decreasing to 0.23 from 0.24.