According to the Mortgage Bankers Association’s Weekly Applications Survey, total mortgage loan application volume increased 11.9 percent last week due to a significant drop in the average mortgage rate. The Refinance Index was up 11 percent and the seasonally adjusted Purchase Index rose 12 percent. The previous week’s results included an adjustment for the New Year’s. Michael Fratantoni, MBA’s chief economist, said the drop in rates triggered a pickup in refinance volume, while the change in purchase activity most likely reflects an increase following the holiday season. Still, the gain in purchase demand was more than anticipated and may indicate a strong selling season this coming spring and summer. The MBA’s survey covers more than 75 percent of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. More here.