For the week ending Oct. 12, mortgage applications decreased 4.2 percent from the prior week, according to the Mortgage Bankers Association’s (MBA). The week’s results include an adjustment to account for the Columbus Day holiday.

The market composite index, a measure of mortgage loan application volume, decreased 4.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index decreased 14 percent compared with the previous week. The refinance index decreased 5 percent from the previous week. The seasonally adjusted purchase index increased 1 percent from one week earlier. This is the highest purchase index observed in the survey since early June 2012. The unadjusted purchase index decreased 9 percent compared with the previous week and was 12 percent higher than the same week one year ago.

The refinance share of mortgage activity decreased to 82 percent of total applications from 83 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained constant at 4 percent of total applications. The HARP share of refinance applications increased to 22 percent from 18 percent the prior week.