Industry data released on Wednesday showed that mortgage application volume edged up over 5 percent last week, as refinance activity rose nearly 8 percent. The increase in applications comes as lower borrowing costs led to a boost in activity.

The Mortgage Bankers Association revealed that its market index of mortgage application volume rose 5.3 percent on a seasonally adjusted basis for the week of April 17th. The Market Composite Index was 1172.2 compared to 1113.2 in the previous week.

On an unadjusted basis, the index increased 5.3 percent, and it was up 76.9 percent on a year-over-year basis.

The Refinance Index increased 7.7 percent from the previous week. For the week of April 17th, the index ticked up to 6540.7 from 6071.7 in the previous week. The percentage of mortgage activity taking place through refinancing was slightly higher, at 79.7 percent versus 77.8 percent in the previous week.

The conventional and government purchase indices both decreased, with the conventional purchase index slipping 4.6 percent and the government purchase index, largely made up of FHA loans, ticking down 3.6 percent.

The adjustable rate mortgage share of activity edged down slightly to 1.4 percent of total applications from 1.5 percent in the previous week.

Interest rates were mixed across the board, with 30-year fixed-rate mortgages reversing a downward trend and ticking up to 4.73 percent from 4.70 percent last week. The rates for 15-year fixed-rate were unchanged at 4.46 percent. One-year ARMs moved down only very slightly, with their contrast interest rates hitting 6.19 percent from 6.21 percent.

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