The Market Composite Index, a measure of mortgage loan application volume, hit the lowest level since May 2002, standing at 527.6 for the week ending July 28, The Mortgage Bankers Association reported today. The index was down 1.2% from 533.8 one week earlier. On an unadjusted basis, the index decreased 1.4% for the week ending July 28 compared with the previous week and was down 29% compared with the same week one year earlier.

The refinance share of mortgage activity increased to 37% of total applications for the week ending July 28 from 35.6% the previous week. The adjustable-rate mortgage (ARM) share of activity hit the lowest level since March 2004, declining to 27.8% of total applications from 28.6% the previous week.