Mortgage applications increased 10.3 percent in the week ending Nov. 4, according to the Mortgage Bankers Association.

The Refinance Index also increased by 12.1 percent, while the seasonally adjusted Purchase Index increased 4.8 percent from the previous week. Refinances increased to 78.6 percent of total applications, up from 77.1 percent in the previous week. The four week moving average for the seasonally adjusted Market Index was down 0.37 percent, while the four week moving average for the seasonally adjusted Purchase Index was up 0.89 percent.

The average interest rate for 30-year fixed-rate mortgages with loans of $417,500 or less decreased to 4.22 percent from 4.31 percent. Average interest for 30-year fixed-rate mortgages over $417,500 decreased to 4.57 percent from 4.69 percent. Interest rates for 30-year fixed-rate mortgages backed by the Federal Housing Administration dropped to 4.02 percent from 4.09 percent.

The average interest rate for a 15-year fixed-rate mortgage decreased to 3.54 percent from 3.63 percent.

Treasury rates dropped last week, as renewed turmoil in Europe once again led to a flight to quality, and 30-year mortgage rates dropped to their second lowest level of the year, said Mike Fratantoni, MBA's vice president of research and economics, in a statement.