Mortgage applications rose a seasonally adjusted 4.7% for the week ending July 31,
The MBA's Market Composite Index rose 5% on an unadjusted basis. The Refinance Index rose 6%.
The seasonally adjusted Purchase Index rose 3% and the unadjusted Purchase Index also rose 3%.
"Despite recent concerns about the economy, both purchase and refinance applications increased strongly in response to lower interest rates last week, "Lynn Fisher, the MBA's vice president of research and economics, said in a news release.
Refinancings as a share of mortgage activity rose to 51.3% of total activity, from 50.6%.
The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances fell to 4.13%, from 4.17%. The average contract interest rate for a 30-year fixed-rate mortgage with jumbo loan balances fell to 4.08%, from 4.12%.The average contract interest rate for a 30-year fixed-rate mortgage with Federal Housing Administration backing fell to 3.96%, from 3.98%.
The MBA's survey covers about 75% of U.S. retail residential mortgage applications and respondents include banks, mortgage bankers and thrifts.
