Mortgage applications increased 3.6% from one week earlier even though rates remained mostly flat during the period, according to the Mortgage Bankers Association.

The MBA's Weekly Mortgage Applications Survey for the week ending Oct. 13 found that the refinance index increased 3% from the previous week. This week's results included an adjustment for the Columbus Day holiday.

The refinance application share decreased to 48.6% from 49% the previous week.

The seasonally adjusted purchase index increased 4% from one week earlier, while the unadjusted purchase index decreased 6% compared with the previous week and was 9% higher than the same week one year ago.

Refinance application share decreases

The market composite index, a measure of mortgage loan application volume, increased 3.6% on a seasonally adjusted basis from one week earlier.

Adjustable-rate loan application activity decreased to 6.1% from 6.6%, while the share for Federal Housing Administration-guaranteed loans increased to 10.4% from 10.3%.

The share of applications for Veterans Affairs-guaranteed loans decreased to 10.5% from 10.6% and the U.S. Department of Agriculture/Rural Development share increased to 0.8% from 0.7%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased 2 basis points to 4.14%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate increased 2 basis points to 4.13%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 4%, while for 15-year fixed-rate mortgages the average increased 1 basis point to 3.45%.

The average contract interest rate for 5/1 ARMs decreased 2 basis points to 3.31%.

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