Applications for U.S. home mortgages increased last week, as refinancing and purchasing activity rose amid lower interest rates on loans, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity increased 5.9 percent to 712.4, more than offsetting the decline of 1.6 percent the previous week. The MBA's seasonally adjusted index of refinancing applications rose 9.8 percent to 2052.5, after falling 1.6 percent the prior week. "With a 9.8 percent increase in applications, refinance activity is at its highest level since March 11," Michael Cevarr, MBA's director of member surveys, said in a press release. "However, refinance applications volume is down 14.6 percent from one year ago," he said. According to the MBA, fixed 30-year mortgage rates averaged 5.75 percent last week, excluding fees, down 8 basis points from 5.83 percent the previous week.