NEW YORK (CNNMoney.com) -- Mortgage applications rose as interest rates fell to their lowest level in 14 months, an industry trade group reported Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Dec. 1 rose 8.1 percent to 647.6, from 599.0 a week earlier.

The 30-year fixed-rate mortgage fell to 5.98 percent, its lowest level since October 2005, from 6.13 last week.

The group's seasonally-adjusted refinance index rose 13.7 percent to 1989.7 from 1749.6 the previous week and the purchase index increased by 4.9 percent to 426.6 from 406.7 one week earlier.

The refinance share of mortgage activity increased to 50.1 percent of total applications from 46.9 the previous week.

Fixed 15-year mortgages rates decreased to 5.66 from 5.86 percent. Rates on one-year adjustable-rate mortgages (ARMs) decreased to 5.79 from 5.87 percent.

The ARM share of activity decreased to 23.9 from 24.5 percent of total applications from the previous week. The ARM share is at its lowest level since October 2003, the MBA said.

The MBA's survey covers about 50 percent of all U.S. retail residential mortgage loans. Respondents include mortgage bankers, commercial banks and thrifts.

() and () are among the nation's largest mortgage lenders.

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