NEW YORK (Reuters) - Applications for U.S. home mortgages increased last week as U.S. consumers came out in droves to refinance their existing loans, an industry group said Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity increased 7.3 percent to 706.4 in the week ended Jan. 28, after decreasing 3.6 percent in the MBA's prior-week survey.

The MBA's seasonally adjusted index of refinancing applications surged 16.6 percent to 2,253.9, more than erasing the 5.7 percent drop the prior week.

The MBA's purchase index, a gauge of loan requests for home purchases, edged up 0.3 percent to 440.3, marginally offsetting the 2 percent loss the previous week.

Fixed 30-year mortgage rates averaged 5.61 percent last week, excluding fees, up 3 basis points from 5.58 percent the previous week.