Applications for U.S. home mortgages rose last week as interest rates fell, an industry group said this morning.

The Mortgage Bankers Association (MBA) said today that its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 7.1 percent in the week ended July 29.

The MBA’s seasonally adjusted index of refinancing applications rose 7.8 percent, while the gauge of loan requests for home purchases rose 5.1 percent.

“Factors such as negative equity and a weak job market continue to constrain borrowers,” Michael Fratantoni, the MBA’s vice president of research and economics, said in a statement.

Though purchase activity increased last week, it remained low by historical standards, he said. And though interest rates on a 30-year mortgage are below 4.5 percent, the refinance index remains nearly 30 percent below last year’s level, Fratantoni said.

Fixed 30-year mortgage rates averaged 4.45 percent in the week ending July 29, down 12 basis points from the week before.

The refinance share of mortgage activity increased to 70.1 percent of total applications from 69.6 percent the week before.