Mortgage applications managed to post another increase as more people choose to refinance their homes.

Mortgage applications grew 9% from one week earlier, according the Mortgage Bankers Association most recent weekly mortgage applications survey for the week ending Jan. 15, 2016.

The refinance index surged 19% from the previous week, while the seasonally adjusted purchase index dipped 2% from one week earlier.

The refinance share of mortgage activity drove a lot of the growth, increasing to 59.1% of total applications, up from 55.8% the previous week.

Furthermore, the adjustable-rate mortgage share of activity increased to 6% of total applications.

The Federal Housing Administration share of total applications dipped to 13.7% from 14.4% the week prior, while the Veteran Affair’s share of total applications declined to 10.8% from 12.2% the week prior.

The United States Department of Agriculture share of total applications marginally decreased, falling to 0.7% from 0.8% the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.06%, from 4.12%.

Also decreasing, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) dipped to 3.93%, from 4.02%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell from 3.90% last week to 3.86%, while the average contract interest rate for 15-year fixed-rate mortgages moved lower to 3.42%, from 3.29%.

In addition, the average contract interest rate for 5/1 ARMs increased to 3.2% from 3.14%.

All of the above except for 5/1 ARMs dropped to their lowest level since October 2015. 

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