THE WALL STREET JOURNAL MARKET WATCH BY Nathalie Tadena REPORTS……
The total number of mortgage applications filed in the U.S. last week rose 5.9% from the prior week as interest rates generally declined, the Mortgage Bankers Association said Wednesday.

The refinance index jumped 8% from the previous week, according to the MBA’s weekly survey, which covers more than three-quarters of all U.S. retail-residential-mortgage applications. On a seasonally adjusted basis, the purchasing index edged up 0.7% from a week earlier, the MBA said.

Record-low interest rates have attracted new buyers and persuaded many homeowners to refinance their existing mortgages. However, tightened credit restrictions still bar many borrowers from filing loan applications.

The share of applications filed to refinance an existing mortgage totaled 84%, while adjustable-rate mortgages, or ARMS, made up about 3% of total activity.

The average rate on 30-year fixed-rate mortgages with conforming loan balances fell to 3.47% from 3.52% in the previous week. Rates on similar mortgages with jumbo loan balances eased to 3.77% from the prior week’s 3.79%. The average rate on 30-year fixed-rate mortgages backed by the Federal Housing Administration slipped to 3.32% from 3.34% in the previous week.

The average rate for 15-year fixed-rate mortgages was slightly lower at 2.85% from 2.86% a week earlier. The 5/1 ARM average rate, however, rose to 2.63%, from the previous week’s 2.62%.