Mortgage applications decreased 7 percent last week, with purchase mortgage applications declining to their lowest level since December 2012, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey.

The MBA’s Market Composite Index, a measure of mortgage loan application volume, dropped 7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index decreased 8 percent compared with the previous week. 

The refinance index decreased 8 percent from the previous week. The seasonally adjusted purchase index decreased 5 percent from one week earlier and is at its lowest level since the end of December 2012. The unadjusted purchase index decreased 7 percent compared with the previous week and was unchanged from the same week one year ago.

The refinance share of mortgage activity decreased to 66 percent of total applications from 67 percent the previous week. Adjustable-rate mortgages (ARMs) made up 7 percent of total applications.

Interest rates for conforming 30-year fixed-rate mortgages decreased to an average of 4.32 percent from 4.33 percent.

Interest rates for jumbo 30-year fixed-rate mortgages increased to an average of 4.37 percent from 4.36 percent.

Interest rates for 15-year fixed-rate mortgages increased to 3.44 percent from 3.42 percent. The average contract interest rate for 5/1 ARMs decreased to 3.08 percent from 3.17 percent.