According to the Mortgage Bankers Association’s Weekly Applications Survey, the Refinance Index rose 2.5 percent last week, reaching its highest level since early August. The spike in refinancing activity is likely tied to decreases in the average mortgage rate after they hit highs for the year in September. In recent weeks, the average contract interest rate for 30-year fixed-rate mortgages has been falling and did again last week. The resulting increase in the Refinance Index pushed total mortgage application demand up 1.3 percent from one week earlier, despite a 1 percent dip in the Purchase Index. The MBA’s weekly survey covers more than 75 percent of U.S. residential mortgage applications. More here.