According to The Mortgage Bankers Association’s Weekly Applications Survey, the Refinance Index increased 21 percent last week after the average contract interest rate for a 30-year fixed-rate mortgage fell to 4.21 percent from 4.25 percent the week before. The Market Composite Index, which measures total loan application volume, was up 14.6 percent on a seasonally adjusted basis. Michael Fratantoni, MBA’s vice president of research and economics, said refinance applications are close to their highest level this year and, despite purchase activity remaining weak, demand for conventional purchase mortgages are at their highest level since the beginning of May. More here and here.