Mortgage applications decreased 7.2% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending September 5, 2014. 

This week’s results included an adjustment for the Labor Day holiday.
  
The Market Composite Index, a measure of mortgage loan application volume, decreased 7.2% on a seasonally adjusted basis from one week earlier, to the lowest level since December 2000.  On an unadjusted basis, the Index decreased 17% compared with the previous week. 

The Refinance Index decreased 11% from the previous week, to the lowest level since November 2008. 

The seasonally adjusted Purchase Index decreased 3% from one week earlier, to the lowest level since February 2014.  The unadjusted Purchase Index decreased 14% compared with the previous week and was 12% lower than the same week one year ago.

The refinance share of mortgage activity decreased to 55% of total applications from 57% the previous week.  The adjustable-rate mortgage share of activity decreased to 7.5% of total applications from 7.8% the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.27%, the first increase in four weeks, from 4.25%, with points increasing to 0.25 from 0.24 (including the origination fee) for 80% loan-to-value ratio loans.  The effective rate increased from last week. 

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.15% from 4.22%, with points increasing to 0.23 from 0.19 (including the origination fee) for 80% LTV loans.  The effective rate decreased from last week. 

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.97% from 3.99%, with points increasing to 0.08 from 0.03 (including the origination fee) for 80% LTV loans.  The effective rate decreased from last week. 

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.44% from 3.48%, with points decreasing to 0.28 from 0.30 (including the origination fee) for 80% LTV loans.  The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 3.12% from 3.19%, with points remaining unchanged at 0.45 (including the origination fee) for 80% LTV loans.  The effective rate decreased from last week.