According to the Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages fell last week. The drop in rates was the first following two consecutive weeks of increases and led to a 9.4 percent spike in total mortgage application demand, which includes both purchase and refinance activity. The seasonally adjusted Purchase Index, which is an indicator of future home sales, jumped 9 percent from one week earlier, while the Refinance Index rose 10 percent. The improvement puts purchase activity 6 percent higher than its level two weeks ago, though it still trails last year’s pace by 19 percent. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.