Mortgage applications decreased 5.5% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending June 12, 2015.

The Market Composite Index, a measure of mortgage loan application volume, decreased 5.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 6% compared with the previous week. The Refinance Index decreased 7% from the previous week. The seasonally adjusted Purchase Index decreased 4% from one week earlier. The unadjusted Purchase Index decreased 6% compared with the previous week and was 15% higher than the same week one year ago.

“Rising rates continue to create volatility in weekly mortgage applications activity. The 10-year Treasury hit 2.5% last week and our survey’s 30-year fixed rate of 4.22% is at its highest level since October 2014. The refinance index dropped to the lowest level since January 2015 as rates continued to increase,” said Mike Fratantoni, MBA’s Chief Economist.

The refinance share of mortgage activity decreased to 48.5% of total applications from previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.5% of total applications.

The FHA share of total applications decreased to 14.2% from 14.3% the week prior. The VA share of total applications remained unchanged at 11.5%. The USDA share of total applications decreased to 0.9% from 1.1% the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.22% from 4.17%, with points increasing to 0.46 from 0.38 (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 4.18% from 4.15%, with points decreasing to 0.36 from 0.37 (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 4.00% from 3.90%, with points increasing to 0.20 from 0.19 (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 3.43% from 3.37%, with points increasing to 0.33 from 0.32 (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 3.15% from 3.06%, with points increasing to 0.52 from 0.50 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.