Applications for home mortgages nationwide jumped last week for the third week in a row as falling mortgage rates fueled demand for refinancing, an industry group said on Wednesday.

The Mortgage Bankers Association (MBA) said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, climbed 7.8 percent in the week ended May 13.

The MBA’s seasonally adjusted index of refinancing applications surged 13.2 percent, while the gauge of loan requests for home purchases dipped 3.2 percent.

Both the overall index and the refinance index reached their highest levels since early December.

The refinance share of mortgage activity rose to 66.7 percent of total applications, the largest amount since late January.

"The 30-year fixed mortgage rate is now 53 basis points below its 2011 peak, and has decreased for five straight weeks," Michael Fratantoni, MBA vice president of research, said in a statement. "Over this five week span, the refinance index has increased by about 33 percent."

Fixed 30-year mortgage rates averaged 4.6 percent in the week, easing from 4.67 percent the week before. It was the lowest rate seen in the survey since late November 2010. (Reuters)