Home mortgages application increased last week as rate for fixed mortgages fell as reported by the Mortgage Bankers Association.

The MBA’s seasonally adjusted index of mortgage application activity rose45.7 percent to 875.3 in the week ended Feb. 13. This was the highest reading since January 16 as a result of the 0.2 percentage point drop in average 30-year mortgage rates over the past week to 4.99%, the MBA said in a statement.

The increase was attributed to the upsurge on refinancing of mortgages, with the MBA's refinancing index went up to 64.3% to 4,472.9. On the other hand, the measure of loan requests for home purchases rose 9.1% to 257.3, the MBA said in the report.

With the Federal Reserve focused on buying a $500 billion mortgage security purchase program in bonds supported by new loans, allowed lenders to lower consumer rates.

A drop in mortgage rates to a record low 4.89 percent in early January drove the MBA's applications index to 1,324.8. This was the highest reading since July 2003. The 30-year fixed mortgage rate rose as high as 5.28% in late January.