The Mortgage Bankers Association (MBA) has released its Weekly Mortgage Applications Survey for the week ending Feb. 26, 2010. Mortgage loan application volume increased last week for the first time in a month as borrowing rates declined which boosted purchases and refinancing mortgage activities.

The Market Composite Index, a measure of mortgage loan application volume, climbed 14.6 percent on a seasonally adjusted basis compared with the previous week. On an unadjusted basis, the Index increased 15.5 percent compared to a week earlier.

“Mortgage applications rebounded last week, particularly refis, as rates dropped back below 5 percent,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Purchase activity remains subdued, with application volumes remaining within the narrow range seen in the last few months.”

The Refinance Index climbed 17.2 percent and the Purchase Index increased 9 percent after reaching the lowest level in more than 12 years a week earlier.

The four week moving average for the seasonally adjusted Market Index is up 0.4 percent. The four week moving average is down 2.7 percent for the seasonally adjusted Purchase Index, while this average is up 1.8 percent for the Refinance Index.

The average rate on a 30-year fixed loan dropped to 4.95 percent from 5.04 the prior week.

The average rate on a 15-year fixed mortgage fell to 4.27 percent from 4.35 percent. The rate on a one-year adjustable mortgage dropped to 6.77 percent from 6.80 percent.

The share of refinance mortgage increased to 69.1 percent of total applications from 68.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 4.8 percent from 4.7 percent of total applications compared to the week earlier.