Mortgage applications rose 2.9% from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending June 17, 2016.

The Market Composite Index increased 2.9% on a seasonally adjusted basis; on an unadjusted basis, the Index increased 2% from the previous week. The Refinance Index rose 7% and the seasonally adjusted Purchase Index decreased 2% from aweek earlier. The unadjusted Purchase Index decreased 4% but was still 12% higher than the same week one year ago.

The FHA share of total applications decreased to 11.7%from 11.8% the week prior, the VA share of total applications remained unchanged at 11.1% and the USDA share of total applications remained unchanged at 0.6 %.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since May 2013, 3.76%, from 3.79%, with points increasing to 0.33 from 0.32 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to its lowest level since January 2011, 3.70%, from 3.75%, with points increasing to 0.28 from 0.26 (including the origination fee) for 80% LTV loans.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged from 3.61%, with points decreasing to 0.24 from 0.27 (including the origination fee) for 80% LTV loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.04% from 3.06%, with points increasing to 0.36 from 0.34 (including the origination fee) for 80% LTV loans.

The average contract interest rate for 5/1 ARMs increased to 2.92% from 2.87%, with points decreasing to 0.21 from 0.26 (including the origination fee) for 80% LTV loans.