The Market Composite Index, which measures mortgage loan application volume, dropped from 1,245.7 to 1,143.8 in the week ending Jan. 2, the Mortgage Bankers Association said in a release Wednesday.

The Refinance Index also fell, dropping 12.3 percent to 5,904.5, the MBA said.

The average interest rate for 30-year, fixed-rate mortgages increased from 5.03 percent to 5.07 percent with points falling from 1.24 to 1.16, the organization said.

Rates for the average 15-year, fixed-rate mortgages decreased from 4.79 percent to 4.67 percent. Points in 15-year, fixed-rate mortgages fell from 1.26 to 1.16.