Mortgage applications sink despite drop in rates

— -- Mortgage loan applications decreased 15.8% in the week ended June 12, according to a survey by the Mortgage Bankers Association released Wednesday.

The refinance index decreased 23.3% and the purchase index fell 3.5%.

The average interest rate for 30-year fixed rate mortgages decreased to 5.50% from 5.57%, while the rate for 15-year fixed rate mortgages dipped to 4.99% from 5.10% and the rate for one-year ARMs fell to 6.54% from 6.75%.

The survey covers more than 50% of all retail residential mortgage applications from mortgage banks, commercial banks and thrifts and has been conducted weekly since 1990.