The Mortgage Banker’s market composite index, which measures the volume of home loans processed throughout the country, was up 7.5 percent last week.
The increased activity resulted in a dramatic increase in refinance applications.
The index that tracks refinance applications jumped 22.1 percent for mid-January, pushing its share of mortgage activity from 66 percent to 73 percent, while fewer home purchasers accounted for a 17.7 percent drop for the same period, MBA reported.
Adjustable-rate loans also decreased to 8.6 percent last week from 9.3 percent the prior week.
After four continuous weeks of declining interest rates, borrowing costs last week began to rise. The average interest rate on a 30-year, fixed-rate mortgage climbed to 5.6 percent from 5.49 percent one week earlier.