Reversing a month-long trend, mortgage applications increased 0.9% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending December 19, 2014.

The Market Composite Index, a measure of mortgage loan application volume, increased 0.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 0.4% compared with the previous week. The Refinance Index increased 1% from the previous week. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index decreased 1% compared with the previous week and was 1% lower than the same week one year ago.

The refinance share of mortgage activity increased to 67% of total applications from 66% the previous week. The adjustable-rate mortgage share of activity increased to 6.5% of total applications.

The FHA share of total applications decreased to 8.6% this week from 8.7% last week. The VA share of total applications decreased to 10.3% this week from 10.6% last week. The USDA share of total applications remained unchanged at 0.8% this week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.02%, the lowest level since May 2013, from 4.06%, with points increasing to 0.26 from 0.21 (including the origination fee) for 80% loan-to-value ratio 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) increased to 4.07% from 3.99%, with points decreasing to 0.23 from 0.28 (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 decreased to 3.81% from 3.86%, with points increasing to 0.00 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 3.29% from 3.33%, with points increasing to 0.29 from 0.27 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs increased to 3.10% from 3.00%, with points decreasing to 0.31 from 0.43 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.