Mortgage applications increased 3.8% from one week earlier, according to data from the Mortgage Bankers Association’s  Weekly Mortgage Applications Survey for the week ending October 3, 2014.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 4% compared with the previous week.

The Refinance Index increased 5% from the previous week. The seasonally adjusted Purchase Index increased 2% from one week earlier to the highest level since early July. The unadjusted Purchase Index increased 2% compared with the previous week and was 8% lower than the same week one year ago.

The refinance share of mortgage activity remained unchanged at 56% of total applications from the previous week. The adjustable-rate mortgage share of activity increased to 7.8% of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.30% from 4.33%, with points decreasing to 0.19 from 0.31 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.21% from 4.28%, with points increasing to 0.29 from 0.15 (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 4.00% from 4.07%, with points increasing to 0.15 from 0.04 (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 3.48% from 3.55%, with points increasing to 0.32 from 0.26 (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 3.20% from 3.31%, with points decreasing to 0.37 from 0.51 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.