Mortgage application volume increased 3.8%, on an adjusted basis, during the week ending Oct. 3, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, volume was up about 4% compared to the previous week.
Applications for refinances increased 5%, on an adjusted basis, while applications for purchases increased 2%.
On an unadjusted basis, purchase application volume increased 2% and was 8% lower than the same week one year ago.
The refinance share of mortgage activity remained unchanged at 56% of total applications.
Helping to drive the increase was the fact that mortgage rates decreased significantly compared to the previous week. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.30%, down from 4.33%.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.21%, down from 4.28%.
The average rate for a 30-year FRM backed by the Federal Housing Administration was 4%, down from 4.07% the week prior.
The average rate for a 15-year FRM was 3.48%, down from 3.55%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.20%, down from 3.31%.
The ARM share of activity increased to 7.8% of total applications.
All rates are based on closings.