The housing market has been showing gradual improvement in recent months and low mortgage rates are helping spur activity, although credit is still tight for potential buyers.
{mosads}The refinance share of mortgage activity decreased to 80 percent of total applications from 81 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages with balances of $417,500 or less increased to 3.65 percent from 3.63 percent, the highest level since mid-September.
The 30-year rate on loans with balances greater than $417,500 increased to 3.94 percent from 3.85 percent, also the highest rate since last month.
The average rate for 30-year fixed-rate mortgages backed by the Federal Housing Administration (FHA) was unchanged at 3.41 percent, the highest level since the end of September.
The average contract interest rate for 15-year fixed mortgages decreased to 2.95 percent from 2.96, while the rate for 5/1 adjustable rate loans decreased to 2.66 percent from 2.72.