After increasing by 2.9% on a seasonally-adjusted basis during the last week of September, the Market Composite Index reversed its growth and decreased by 6.0% during the week ending October 7th, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. This fall in application volume was the same on both a seasonally adjusted and unadjusted basis.

The Refinance Index has decreased 8% so far this month, and the index is down to its lowest level since June. The Purchase Index decreased 3% on a seasonally-adjusted basis and 2% unadjusted.

The refinance share of mortgage activity has decreased to 62.4% of total applications, while the ARM share has decreased to 4.1%. The FHA share has increased to 10.9%, the VA share has increased to 12.0%, and the USDA share remains unchanged at 0.7%.

For 30-year fixed rate mortgages with conforming loan balances ($417,000 or less), the average contract interest rate increased to 3.68%, its highest level since September. The average contract interest rate for 30-year fixed rate mortgages with jumbo loan balances (more than $417,000), also increased, rising to 3.67%. For 30-year loans backed by the FHA, the average contract interest rate increased to 3.54%.

For 30-year fixed-rate 80% LTV (loan-to-value) loans, points for mortgages with conforming balances increased to 0.35 from 0.32, and points for mortgages with jumbo balances fell to 0.24 from 0.25. Points for loans backed by the FHA increased to 0.23 from 0.16. (All point reports include the origination fee.)

For 15-year fixed rate mortgages, the average contract interest rate increased to 2.97%, and for 5/1 ARMs the rate remained unchanged at 2.92%. Points for 15-year fixed-rate mortgages that are also 80% LTV loans rose to 0.34 from 0.32, and points for 5/1 ARMs that are also 80% LTV loans decreased to 0.28 from 0.44.