Mortgage applications decreased 4.1% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Sept. 19, 2014.  

This comes a week after mortgage applications jumped a dramatic 7.9%.

The Market Composite Index, a measure of mortgage loan application volume, decreased 4.1% on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 5% compared with the previous week.  The Refinance Index decreased 7% from the previous week.  The seasonally adjusted Purchase Index decreased 0.3% from one week earlier.  The unadjusted Purchase Index decreased 2% compared with the previous week and was 16% lower than the same week one year ago.

The refinance share of mortgage activity decreased to 56% of total applications from 57% the previous week.  The adjustable-rate mortgage (ARM) share of activity increased to 8.0% of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.39%, the highest rate since May 2014, from 4.36%, with points increasing to 0.35 from  0.20 (including the origination fee) for 80% loan-to-value ratio (LTV) 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) increased to 4.30% from 4.24%, with points increasing to 0.22 from 0.16 (including the origination fee) for 80% LTV loans.  The effective rate increased from last week. 

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.08%, the highest rate since May 2014, from 4.03%, with points increasing to 0.09 from 0.05 (including the origination fee) for 80% LTV loans.  The effective rate increased from last week. 

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 3.56%, with points increasing to 0.26 from 0.25 (including the origination fee) for 80% LTV loans.  The effective rate remained unchanged from last week.

The average contract interest rate for 5/1 ARMs increased to 3.20% from 3.19%, with points increasing to 0.40 from 0.29 (including the origination fee) for 80% LTV loans.  The effective rate increased from last week.