After falling 4.7% the previous week, mortgage application volume increased 4.6% on an adjusted basis during the week ended July 3, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, volume fell 6% compared with the previous week. The adjustment was to account for the effects of the Independence Day holiday, the MBA says in a release.
Applications for refinances increased 3% while applications for purchases increased 7%.
On an unadjusted basis, applications for purchases decreased 4% compared with the previous week but were 32% higher compared to the same week one year ago.
The refinance share of mortgage activity decreased to 48.0% of total applications, down from 48.9% to reach the lowest level since June 2009.
Fixed mortgage rates dipped slightly last week, which likely helped with volume. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.23%, down from 4.26% the previous week.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.18%, down from 4.21%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 4.01%, down from 4.04%.
The average rate for a 15-year FRM was 3.41%, down from 3.44%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.03%, down from 3.09%.
The ARM share of activity increased to 7.1% of total applications.
Looking at application volume by loan type, the FHA's share of total applications was 13.7%, up from 14.0% the week prior. The Veterans Affairs' share of total applications was 10.8%, unchanged from the week prior. The U.S. Department of Agriculture's share of total applications was 0.9%, down from 1.0%.