Mortgage applications nationwide increased 4.1 percent from one week earlier, according to a recent report from the Mortgage Bankers Association (MBA).

Refinance applications also increased by 8 percent from the previous week, according to a statement. However, purchased applications decreased 9.1 percent from one week earlier.

Fixed 30-year mortgages rates averaged 4.32 percent in the week, a decrease of 0.2 points. This is the third consecutive weeks of decreases and a new low for fixed 30-year mortgage rates for the year.

Fixed 15-year mortgage rates averaged 3.47 percent, a decrease from 3.52 percent last week. The 15-year mortgage rate is at its lowest level in the history of the MBA’s survey, according to a statement.

"Unprecedented volatility in the stock market last week amid additional signs that the economy has slowed led to further drops in mortgage rates, with the 15-year rate reaching a new low for the MBA survey," said Mike Fratantoni, MBA vice president of research and economics. "Purchase application activity fell sharply over the previous week, likely the result of potential homebuyers hesitant to purchase in this highly volatile and uncertain environment."