The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning. It noted a week-over-week increase of 11.3% in the group’s seasonally adjusted composite index for the week ending August 28, following an increase of 0.2% for the previous week. Mortgage loan rate changes were mixed last week.

On an unadjusted basis, the composite index increased by 10% week over week. The seasonally adjusted purchase index rose by 4% compared to the week ended August 21. The unadjusted purchase index increased by 2% for the week and is now 25% higher year over year.

The MBA’s refinance index increased by 17% week over week to its highest level since July, and the percentage of all new applications that were seeking refinancing jumped from 55.3% to 58.7%.

Adjustable rate mortgage loans accounted for 7.5% of all applications, up sharply from 6.8% in the prior week.

The MBA’s chief economist noted:

Although mortgage rates [for 30-year fixed conventional loans] were unchanged for the week, Treasury rates were down sharply early in the week due to the global stock market rout and this led to a significant increase in application volume.

And Mortgage News Daily offers this advice:

The potential for bigger-than-average movement can’t be over-emphasized when considering the upcoming days. With the the highest volatility in stock markets since at least 2011, the Fed apparently considering raising rates in 2 weeks, and interest rates growing increasingly quiet, the stage seems set for a big break. The risks and rewards grow exponentially from [Monday] as the week progresses due to the scheduled data. If you’re not willing to absorb a significant increase in mortgage costs in exchange for a chance at significant savings, now’s the time to lock.

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According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage remained unchanged at 4.08%. The rate for a jumbo 30-year fixed-rate mortgage increased from 4.00% to 4.05%. The average interest rate for a 15-year fixed-rate mortgage fell from 3.33% to 3.30%.

The contract interest rate for a 5/1 adjustable rate mortgage loan increased from 2.96% to 3.05%. Rates on a 30-year FHA-backed fixed-rate loan decreased from 3.90% to 3.87%.

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