The Mortgage Bankers Association announced that the mortgage application volume increased 2.8% during the week ending Aug. 1 through its weekly application survey. The MBA's application index rose to 432.6 from the year’s low of 420.8 a week earlier.

Refinance volume increased 4.4%, while purchase volume grew 1.8% during the week. Refinance applications accounted for 35.9% of all applications during the week, compared with 35.2% during the previous week.

The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.

An index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA tracked application volume. A reading of 432.6 means mortgage application activity is 4.326 times higher than it was when the MBA began tracking the data.

The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about 50% of all residential retail mortgage originations each week.

Application volume rose from its 2008 low as interest rates were mixed. The average rate for traditional, 30-year fixed-rate mortgages fell to 6.41% from 6.46% during the prior week.

The average rate for 15-year fixed-rate mortgages - often a popular option for refinancing a home - rose to 6.02% from 5.98%.

Rates for one-year adjustable-rate mortgages fell to 7.17% from a 2008 high of 7.25%.