Mortgage applications decreased 6.6% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending October 24, 2014.

The Market Composite Index, a measure of mortgage loan application volume, decreased 6.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 7% compared with the previous week. The Refinance Index decreased 7% from the previous week.

The seasonally adjusted Purchase Index decreased 5% from one week earlier. The unadjusted Purchase Index decreased 5% compared with the previous week and was 15% lower than the same week one year ago. The seasonally adjusted purchase index and conventional purchase index were the lowest since February 2014, while the government purchase index was the lowest since August 2007.

“Borrowers with jumbo loans tend to be most sensitive to changes in rates, and that sensitivity has been clearly apparent in the past few weeks with double and even triple digit percentage changes in refinance application volume for jumbo loans,” said Mike Fratantoni, MBA’s Chief Economist. “The average loan size for refinance applications decreased to $263,600 in the most recent week from a survey high of $306,400 the previous week. The decrease was driven by a 41% drop in refinance applications for loans greater than $729,000, which had surged almost 130% the week before.”

The refinance share of mortgage activity remained unchanged at 65% of total applications from the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.2% of total applications.

The FHA share of total applications increased from 8.3% last week to 8.9% this week. The VA share of total applications increased from 9.6% last week to 10.7% this week. The USDA share of total applications increased from 0.8% last week to 0.9% this week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.13% from 4.10%, with points remaining unchanged at 0.21 (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 4.13% from 4.03%, with points decreasing to 0.13 from 0.20 (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 3.84% from 3.81%, with points increasing to 0.16 from 0.07 (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 3.28%, with points increasing to 0.24 from 0.22 (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 remained unchanged at 2.94%, with points increasing to 0.43 from 0.37 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.