Mortgage applications increased 0.4% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 3, 2015.

The Market Composite Index, a measure of mortgage loan application volume, increased 0.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1% compared with the previous week. The Refinance Index decreased 3% from the previous week. The seasonally adjusted Purchase Index increased 7% from one week earlier, reaching its highest level since July 2013. The unadjusted Purchase Index increased 7% compared with the previous week and was 12% higher than the same week one year ago.

“Purchase mortgage application volume last week increased to its highest level since July 2013, spurred on by still low mortgage rates and strengthening housing markets,” said Mike Fratantoni, MBA’s Chief Economist. “Purchase volume has increased for three straight weeks now on a seasonally adjusted basis.”

The refinance share of mortgage activity decreased to 57% of total applications, its lowest level since October 2014, from 60% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.5% of total applications.

The FHA share of total applications increased to 13.2% last week from 12.8% the week prior. The VA share of total applications increased to 10.7% last week from 10.5% the week prior. The USDA share of total applications remained unchanged at 0.8% from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.86% from 3.89%, with points decreasing to 0.27 from 0.36 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.81%, its lowest level since May 2013, from 3.90%, with points decreasing to 0.26 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.69% from 3.73%, with points increasing to 0.18 from 0.13 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.15% from 3.21%, with points unchanged from 0.29 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.76%, its lowest level since May 2013, from 2.93%, with points increasing to 0.45 from 0.41 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.