Mortgage applications fell 1.3% from the previous period for the week ending May 25, an industry trade group said.

The Mortgage Banker's Association released its market composite index, a measure of loan application volume Wednesday. The survey shows both refinancing and purchase activity on the decline from a week earlier. The refinance index alone fell 1.5% and the seasonally adjusted purchase index fell 1.8% from the previous week.

The four-week moving average for the seasonally-adjusted market index grew 3.23%, while the four-week moving average is down 0.67% for the seasonally adjusted purchase index. The same average is up 4.36% for the refinance index.

Mortgage refinance activity remained unchanged, representing 76.6% of all applications from the previous week.

The average contract interest rate for a 30-year, FRM with conforming loan balances declined from 3.93% to 3.91%, the lowest rate in history. The average interest rate for the 30-year, FRM with jumbo loan balances declined from 4.25% to 4.23%.

The average 30-year, FRM backed by the FHA declined from 3.73% to 3.70%.

The average interest rate for a 15-year, FRM fell from 3.26% to 3.23%.

In addition, the average contract interest rate for the 5/1 ARMs fell from 2.83% to 2.77%.