Mortgage applications rose 0.9 percent last week on a seasonally adjusted basis to 631.6.

On an unadjusted basis, the Mortgage Bankers Association’s weekly Mortgage Applications Survey increased 25.9 percent compared with the previous week, which included the July 4 holiday, and was up 15.7 percent compared with the same week in 2006.

The refinance share of mortgage activity increased to 37.7 percent of total applications, up from 36.2 the previous week.

The average interest rate for 30-year fixed-rate mortgages decreased to 6.61 percent from 6.65 percent.

The average interest rate for 15-year fixed-rate mortgages decreased to 6.29 percent.

The average contract interest rate for one-year ARMs remained unchanged at 5.6 percent

Soruce: National Association of Realtors

John O’Dell is a licensed real estate broker, civil engineer and general contractor