Mortgage activity as measured by the Mortgage Bankers Association's Market Composite index increased 6.3% last week on a seasonally adjusted basis, which included an adjustment for Labor Day, from a week earlier. On an unadjusted basis, the Index decreased 15.4%.

The seasonally adjusted Purchase Index increased 7.0% from the prior week but fell 16.2% unadjusted and was 7.2% below the same week a year earlier.The Refinance Index increased 6.0%, not adjusted seasonally but adjusted for the holiday. On an unadjusted basis, the Refinance Index decreased 15.2% and was 23.5% lower than the comparable week last year.

The four week moving average for the seasonally adjusted Market Index was down 2.9%, up 0.5% for the seasonally adjusted Purchase Index and down 3.9% for the Refinance Index. The refinance share increased to 77.3% of total applications from 77.1% the previous week; the adjustable-rate mortgage(ARM) share decreased to 6.9% from 7.1%.

The average rate for 30-year fixed-rate mortgages decreased to 4.17% from 4.23%, with points decreasing to 0.97 from 1.04, the lowest rate in the history of the survey. The rate for 15-year fixed-rate mortgages decreased to 3.40% from 3.41%, with points increasing to 1.17 from 0.94 , also the lowest in the history of the survey.