The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting an increase of 6.4% in the group’s seasonally adjusted composite index, following a drop of 0.6% for the previous week. Mortgage loan rates dropped across the board last week.

The seasonally adjusted purchase index increased by 2% from last week’s report. On an unadjusted basis, the composite index increased by 6% week-over-week. The unadjusted purchase index increased by 2% for the week, and is down 0.1% year-over-year. This marks the fifth week in a row that the year-over-year unadjusted purchase index is lower than it was a year ago.

The MBA’s refinance index increased by 9%, after falling by 1% in the previous week. The share of refinancings climbed by two points to 67% of all applications. Adjustable rate mortgage loans account for 7% of all applications, unchanged from the prior week.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage decreased from 4.39% to 4.33%. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.43% to 4.36%. The average interest rate for a 15-year fixed-rate mortgage retreated from 3.51% to 3.42%. All three loan types have fallen to their lowest levels since June.

The contract interest rate for a 5/1 adjustable rate mortgage loan decreased from 3.25% to 3.17%.

Refinancings have picked up again since interest rates have fallen from August highs. However refinancing remains nearly 60% below its May levels. The purchase index is also lower than it was in May and below year-ago levels as well.

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