The U.S Mortgage Bankers Association released the figures of mortgage applications for the January 13 week, where mortgage application activity climbed 23 percent, an all-time record according to the MBA, following a 4.5 percent increase in the period ended January 6 from the past week.

One of the two main components of the gauge, refinancing activity rallied 26.4 percent, its highest since August, from 3.3 percent, as mortgage rates dropped, while purchase index gained 10.3 percent from 8.1 percent in week ended Friday.

The average rate on a 30-year fixed loan eased to 4.06 percent from 4.11 percent, while the average rate on a 15-year fixed mortgage dropped by seven basis points to 3.33 from 3.40 percent past week.