Mortgage application volume bounced back during the week ended July 14, following a sharp downturn a week earlier. That week had been shortened by the Independence Day holiday.

The Mortgage Bankers Association said its Market Composite Index, a measure of that volume, rose 6.3 percent on a seasonally adjusted basis compared to the prior week, and was up 33 percent on an unadjusted basis. The previous week's numbers were adjusted to account for the holiday.

The Refinance Index increased 13 percent from the previous week, the same percentage by which it declined the week before. The refinance share of activity rose to 44.7 percent from 42.1 percent.

The seasonally adjusted Purchase Index gained 1 percent week-over-week and was up 27 percent on an unadjusted basis. The unadjusted version was 7 percent higher than the same week in 2016.

The FHA share of total applications increased to 10.7 percent from 10.4 percent. VA applications also accounted for 10.7 percent of the total, down from 11.5 percent.  USDA's share of total applications remained unchanged from the prior week at 0.7 percent.

Average contract rates for most mortgage types were either unchanged or slightly lower than a week earlier, and all effective rates declined. The average contract interest rate for conforming 30-year fixed-rate mortgages (FRM), those with balances of $424,100 or less, was unchanged at 4.22 percent, with points decreasing to 0.31 from 0.40.

The average rate for jumbo 30-year FRM, loans with balances above the conforming limit, declined by 1 basis point to 4.18 percent. Points were unchanged at 0.30.

Thirty-year FRM backed by the FHA had an average contract rate of 4.10 percent with 0.30 point. The previous week the rate was 4.12 percent with 0.40 point.

The rate for 15-year FRM averaged 3.48 percent, compared to 3.50 percent. Points edged down to 0.39 from 0.45.

The rate for 5/1 adjustable rate mortgages (ARMs) remained at the previous week's average of 3.32 percent, but points decreased to 0.21 from 0.31. The ARM share of activity was also unchanged at 6.7 percent of total applications.

MBA's Weekly Mortgage Applications Survey has been conducted since 1990 and covers over 75 percent of all U.S. retail residential mortgage applications.  Respondents include mortgage bankers, commercial banks and thrifts.  Base period and value for all indexes is March 16, 1990=100 and interest rate information is based on loans with an 80 percent loan-to-value ratio and points that include the origination fee.