Mortgage applications rose 7.4% in the week ended Feb. 3 as mortgage rates fell for the fifth week in a row, the Mortgage Bankers Association said, citing its Weekly Mortgage Applications Survey.    

The average contract interest rate for conforming 30-year mortgages of $726,200 or less slid to 6.18% from 6.19% the week before, while the rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.14% from 6.18%.      

At the same time, MBA’s refinance index rose 18% from the week before, as the refinance share of mortgage activity rose to 33.9% of mortgage applications from 31.2% in the preceding week.  

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances of more than $726,200 slid to 5.96% from 5.99%, and the average contract interest rate for a 15-year fixed-rate mortgage increased to 5.64% from 5.50%.      

“Overall applications remained 58% lower than a year ago, and rates are still significantly higher; however, this week’s results are a step in the right direction,” MBA Vice President and Deputy Chief Economist Joel Kan said in a news release. “Purchase activity that was put on hold last year due to the quick runup in rates is gradually coming back, as rates ease, and housing demand remains strong, driven by supportive demographics and the ongoing strength in the job market.”