Mortgage Applications Index Rises 3.4%

U.S. mortgage applications increased last week as a drop in mortgage rates prompted more people to buy homes. Fewer homeowners refinanced.

The Mortgage Bankers Assn.’s applications index rose 3.4%. The index of applications to purchase homes rose 6.6% last week, while the gauge of applications to refinance existing mortgages fell 1.1%.

Refinancing’s share of total applications fell for a fourth straight week, to 45.6% from 46.4% the week before.