US Mortgage applications increased last week as reported in today’s Mortgage Bankers Association (MBA)’ Weekly Mortgage Applications Survey for the week ending January 29, 2010. The Market Composite Index which is a measure of mortgage loan application volume climbed 21.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index rose 23.5 percent compared with the previous week.

Refinancing applications was 26.3 percent above the previous week’s volume while the seasonally adjusted Purchase Index rose 10.3 percent compared to one week earlier according to the MBA’s survey.

The unadjusted Purchase Index increased 17.5 percent compared with the previous week. On an annual basis it was 11.2 percent below than the same week last year.

The four week moving average for all mortgages rose to a seasonally adjusted 7.6 percent. The four week moving average is up 3.0 percent for the seasonally adjusted Purchase Index, while this average is up 9.4 percent for the Refinance Index.

The refinance applications comprised 69.2 percent of total applications from 67.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity was 4.5 percent down from 4.7 percent of total applications from the previous week.

According to the survey, the average 30-year mortgage rate decreased to 5.01 percent from 5.02 percent, with points increasing to 1.04 from 1.00 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 30-year fixed-rate mortgages fell to 5.01 percent from 5.02 percent, with points 5.02 percent.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.33 percent from 4.34 percent, with points increasing to 1.17 from 1.14 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs fell to 6.70 percent from 6.84 percent.

The survey includes over 50 percent of all U.S. retail residential mortgage applications.

Respondents include mortgage bankers, commercial banks and thrifts. The survey has been conducted weekly since 1990 when the value for all indexes is equal to 100.