Mortgage application volume increased 2.7% from the previous week as more consumers applied for refinance loans, according to the Mortgage Bankers Association.

The number of refinance applications increased by 7%, during the week ended April 21. For second straight week, the refi share of total applications increased, this time to 44% from 42.4% the week before.

Purchase volume declined by 1% on a seasonally adjusted basis and by 0.1% on an unadjusted basis compared with the prior week. Purchase activity was 0.4% higher on an unadjusted basis for the same week in 2016.

Applications for adjustable rate mortgages increased to 8.7% of total volume from 8.4% the week prior.

There was a one percentage point decrease in the share of Federal Housing Administration applications, to 10% from 11% one week ago, while Veteran's Affairs-guaranteed mortgage applications fell to 10.9% from 11.1%. The USDA share of total applications dropped to 0.8% from 1%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) fell 2 basis points to 4.20%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate was unchanged at 4.15%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.03% from 4.09%, while for 15-year fixed-rate mortgages, the average fell 4 basis points to 3.46%.

The average contract interest rate for 5/1 ARMs decreased to 3.22% from 3.27%.

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