Mortgage applications decreased 9.6 percent from one week earlier, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending Aug. 26, 2011. The Market Composite Index, a measure of mortgage loan application volume, decreased 9.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 10 percent compared with the previous week. The Refinance Index decreased 12.2 percent from the previous week. The seasonally adjusted Purchase Index increased 0.9 percent from one week earlier. The unadjusted Purchase Index decreased 1.3 percent compared with the previous week and was 8.2 percent lower than the same week one year ago. "Accounting for the increase in average points paid, effective mortgage rates were little changed last week. Refinance application volume declined for a second week from recent highs, despite rates staying near a 10-month low, while purchase volume remained near 15-year lows," said Mike Fratantoni, VP of research and economics for the Mortgage Bankers Association (MBA). The four week moving average for the seasonally adjusted Market Index is up 2.5 percent. The four week moving average is down 3.8 percent for the seasonally adjusted Purchase Index, while this average is up 4.2 percent for the Refinance Index. The refinance share of mortgage activity decreased to 77.8 percent of total applications from 79.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.1 percent from 6.2 percent of total applications from the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.32 percent from 4.39 percent, with points increasing to 1.30 from 0.88 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week. The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.49 percent from 3.56 percent, with points remaining unchanged from 1.00 (including the origination fee) for 80 percent LTV loans. The effective rate also decreased from last week.