Following two weeks of incredibly strong weekly gains, mortgage applications decreased 3.2% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending January 23, 2015. This week’s results include an adjustment to account for the Martin Luther King holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 3.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 12% compared with the previous week. The Refinance Index decreased 5% from the previous week. The seasonally adjusted Purchase Index decreased 0.1% from one week earlier. The unadjusted Purchase Index decreased 4% compared with the previous week and was 1% higher than the same week one year ago. The seasonally adjusted Government Index increased 9.2% from the previous week to the highest level since July 2013.

The refinance share of mortgage activity decreased to 72% of total applications from 74% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.7% of total applications.

The FHA share of total applications increased to 9.1% this week from 8.0% last week. The VA share of total applications increased to 10.7% this week from 9.4% last week. The USDA share of total applications increased to 0.7% from 0.6% last week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.83% from 3.80%, with points decreasing to 0.26 from 0.29 (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 3.87% from 3.86%, with points increasing to 0.33 from 0.23 (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 3.71% from 3.66%, with points decreasing to 0.07 from 0.15 (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 increased to 3.15% from 3.10%, with points decreasing to 0.28 from 0.29 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 2.96% from 2.87%, with points increasing to 0.42 from 0.41 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

Due to a revised data submission, results for week ending January 9, 2015 and January 16, 2015 were amended. The seasonally adjusted market index for week ending January 9, 2015 increased 46.7% rather than as initially reported at 49.1%. The seasonally adjusted purchase index increased 21.2% rather than as initially reported at 23.6%. The refinance index increased 63.9% rather than as initially reported at 66.4%.

The seasonally adjusted market index for week ending January 16, 2015 increased 16.1% rather than as initially reported at 14.2%. The seasonally adjusted purchase index decreased 0.6% rather than as initially reported as decreasing 2.5%. The refinance index increased 24.2% rather than as initially reported at 22.3%.