The Mortgage Bankers Association's Market Composite Index, which measures mortgage loan application volume, rose 2.2% on a seasonally adjusted basis last week from a week earlier. The Refinance Index increased 4.9% from the previous week and the seasonally adjusted Purchase Index decreased 3.7% from the previous week.

Rates for 30-year fixed rate mortgages decreased to an average of 4.78% from 4.82% for 80% loan-to-value loans with 0.91 points, down from 1.10 the previous week. Rates for similar 15-year loans dropped to 4.15% from 4.23% with points up to 1.01 from 1.00.

On an unadjusted basis, the MCI increased 47.5% compared with the previous week, which included the New Year's holiday. The unadjusted Purchase Index increased 41.9% compared with the previous week and was 10.5% lower than the same week one year ago.

The four week moving average for the seasonally adjusted Market Index is down 5.3%, down 1% for the seasonally adjusted Purchase Index and down 7.5% for the Refinance Index.

The refinance share of mortgage activity increased to 72.1% of total applications and the adjustable-rate mortgage share of activity decreased to 4.9% from 5.0 percent of total applications in the previous week.