Total mortgage application volume increased 1.3 percent on a seasonally adjusted basis last week from one week earlier, according to the Mortgage Bankers Association.
Applications to refinance a loan continued their surge, up another 3 percent week to week, while applications for a loan to purchase a home fell 2 percent.
Read MoreS&P, Calpers settle $125M mortgage suit: Report
Purchase applications are just 3 percent higher than a year ago. Most of the gains are coming from FHA volume.
"Following several weeks of already elevated refinance activity due to falling interest rates, FHA refinance applications increased 76.5 percent," said Lynn Fisher, MBA's vice president of research and economics.
Read MoreOne-third of mortgage holders don't know this fact
"Conventional refinance volume was up only 0.5 percent for the week. FHA purchase applications were also up 12.4 percent, despite a decrease in purchase applications in the rest of the market."