Mortgage applications rebounded, rising 7.7% for the week ending March 22, the first recorded increase in two weeks.

Although refinance applications stayed frozen, more people are applying for mortgages, the Mortgage Bankers Association said in its weekly report.

The refinance index increased 8% along with the purchase index, which rose 7%.

The refinance share of overall mortgage activity remained unchanged at 75%, breaking 10 consecutive weeks of straight declines. 

In addition, the adjustable-rate mortgage share of activity decreased to 5% of total applications.

Meanwhile, the average 30-year, fixed-rate mortgage with a conforming loan balance fell to 3.79%.

The average 30-year, FRM with a jumbo loan balance sunk back to 3.90%, a position it held two weeks ago.

The average contract interest rate for the 30-year, FRM backed by the FHA also decreased to 3.51%.

Additionally, the 15-year, FRM remained steady at 3.02%, and the 5/1 ARM dropped to 2.58% from 2.59%.  

"The rebound in mortgage applications is a small piece of a brighter housing outlook," said Quicken Loans Chief Economist Bob Walters. 

He explained, "Interest rates are still at record lows despite their upward trend, and consumers are taking advantage of record home affordability. Look for more buyers to enter the market this spring and a more robust housing recovery to occur."