The Mortgage Bankers Association of America's seasonally adjusted measure of mortgage purchase and refinance loan applications increased 6.4 percent to 1,171.2 for the week ended Jan. 24 from 1,100.3 the previous week.

The MBA seasonally adjusted mortgage purchase index increased to 365.5 from 355.3 the previous week, and the seasonally adjusted refinance index increased to 5,858.1 from 5,433.4 the previous week.

Refinancing activity represented 75.4 percent of total applications, decreasing from 75.7 percent the previous week. The share of adjustable-rate mortgage activity decreased to 13.2 percent from 13.8 percent the previous week.

The average contract interest rate for 30-year fixed rate mortgages decreased to 5.72 percent from 5.74 percent the previous week. Points including origination fee increased to 1.6 from 1.57 the previous week for 80 percent loan-to-value ratio loans. 

The average contract interest rate for 15-year fixed rate mortgages decreased to 5.15 percent from 5.17 percent the previous week. Points including origination fee remained the same as the previous week at 1.41 for 80 percent loan-to-value ratio loans.

The average contract interest rate for one-year ARMs remained at the record low of 3.61 percent reached the previous week. Points including origination fee also remained the same as the previous week at 1 for 80 percent loan-to-value ratio loans. The previous record low of 3.68 percent was set the week ended Dec. 27, 2002.

Due to the Martin Luther King holiday, this week's seasonally adjusted indexes were adjusted upward by 11.1 percent to allow for a one-half day holiday effect.

The survey covers approximately 40 percent of all U.S. retail residential mortgage originations and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.