Mortgage purchase demand jumped in the last week of February, according to the latest weekly application data from the Mortgage Bankers Association (MBA).

The MBA’s Market Composite Index, a measure of mortgage loan application volume, rose 11% on a seasonally adjusted basis for the week ending Feb. 27, while notching a 12.1% increase on an unadjusted basis.

The refinance component index gained 14.3% over the week to land 109% higher than the same week one year ago, extending a streak of strong demand in recent weeks as borrowing costs have dipped below 6%.

“Refinance applications increased for the fourth straight week to the strongest pace since 2022, with conventional refinances up 20%,” said Joel Kan, deputy chief economist at the MBA, in commentary accompanying the data.

The average rate for 30-year fixed-rate mortgages with conforming loan balances was unchanged over the week at 6.09%, according to MBA data, while the average rate for 30-year loans insured by the Federal Housing Administration (FHA) was also unchanged from the previous week at 5.97%.

The refinance share of mortgage activity increased to 59.8% of total applications from 58.6% the previous week and around 56% earlier in the month. However, the seasonally adjusted purchase component index was up 6.1% over the week.

“Purchase applications also moved higher, with the week’s pace almost 10% ahead of last year’s pace, as lower rates and growing levels of housing inventory continue to support homebuyer interest,” Kan added. The unadjusted purchase index had been 12% higher over the year during the previous week.

The FHA share of total applications decreased from the prior week to 15.8%, while the share of applications for loans backed by the Department of Veterans Affairs slid to 17.1% from 18.7% the previous week.

The median payment for a new purchase mortgage originated in January rose to $2,070 from $2,025 in December, the MBA also reported recently, about $135 lower than median payments a year ago.