Mortgage application activity rose 3.1% from one week earlier as refinance demand increased, according to the Mortgage Bankers Association.

The MBA's Weekly Mortgage Applications Survey for the week ending Nov. 10 found that the refinance index increased 6% from the previous week. This week's results do not include an adjustment for the Veterans Day holiday.

The refinance application share increased to 51.3% from 49% the previous week.

Purchase applications were up 0.4% on a seasonally adjusted purchase index from one week earlier. Unadjusted, the purchase index decreased 3% compared with the previous week and was 17% higher than the same week one year ago.

Mortgage applications rise

The market composite index, a measure of mortgage loan application volume, increased 3.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased 2% compared with the previous week.

Adjustable-rate loan application activity decreased to 6.4% from 6.6%, while the share of Federal Housing Administration-guaranteed loans decreased to 10.2% from 10.6%.

The share of applications for Veterans Affairs-guaranteed loans increased to 10.1% from 10% and the U.S. Department of Agriculture/Rural Development share remained unchanged from the week prior at 0.7%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged at 4.18%. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract rate remained unchanged at 4.12%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 4.05%, while for 15-year fixed-rate mortgages the average increased 3 basis points to 3.54%.

The average contract interest rate for 5/1 ARMs increased 8 basis points to 3.41%.

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