This week’s Monday Market saw a 5.1 percent jump in weekly mortgage applications as interest rates have begun to settle. The rise came even as home borrowers have been dissuaded by interest rate volatility. The gain was driven by applications to refinance a home loan, which rose 6 percent for the week but were still 31 percent lower than a year ago, when interest rates were lower.

Refinance volume is highly sensitive to interest rate moves, and while there was no move last week, rates seem to be steadying a bit after a rise this year. Homebuyers are still challenged by rising home prices and a severe shortage of homes for sale, especially on the lower end of the market.

That may be why the adjustable-rate mortgage (ARM) share of total activity rose to 7 percent of total applications. ARMs offer lower interest rates than the 30-year fixed and can therefore help buyers who are struggling to afford a home.