Mortgage applications rose a seasonally adjusted 4.4 percent last week compared to the week before, as rates on fixed-rate mortgages dropped, according to the Mortgage Bankers Association.

Total application volume was up 18 percent for the week that ended July 31, compared with the same week in 2008, according to the MBA's weekly survey.

Refinance applications rose an unadjusted 7.2 percent last week, compared with the week before, while refinance application volume has risen 35 percent
since its recent low at the end of June. The volume of applications for mortgages to purchase a home was up a seasonally adjusted 0.9% last week.

Refinance applications made up a 54.2% share of all applications, up from 52.6% the week before.

Interest rates were generally lower:

• 30-year fixed-rate mortgages fell to 5.17 percent from 5.36 percent.
• 15-year fixed-rate mortgages fell to 4.60 percent from 4.75 percent.
• 1-year ARMs were 6.67 percent, barely changed from 6.66 percent.

Source: Mortgage Bankers Association (08/05/09)