Mortgage applications rose 14% on rate decreases,
Mike Fratantoni, the MBA's chief economist, cited rate volatility around the FOMC meeting last week as the driver of the increase in applications.
"Rate declines toward the end of the week likely drove applications from both prospective homebuyers and borrowers looking to refinance," he said.
The MBA's Market Composite Index, which measures mortgage loan application volume, increased 26% on an unadjusted basis for the same week.
Refinance application volume rose 58.4% from the previous week. Purchase apps were up 9% on a seasonally adjusted basis and 20% on an unadjusted basis. They were 27% higher than the same week a year ago.
Figures from the previous week had been further adjusted for the Labor Day holiday.
Refinancings as a share of all mortgage activity increased to 58.4% of total applications from 56.2%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 4.09%. The 30-year jumbo ($417,000 or greater) fixed-rate mortgage interest rate fell five basis points to 3.99%, its lowest level since May.
