The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. rose 3.8 percent in the week ended December 6, following a 9.2 percent plunge in the previous week.

According to the report, refinance applications surged 8.7 percent, while applications to purchase a home fell 0.4 percent

Meanwhile, the average fixed 30-year mortgage rate edged up to 3.98 percent from 3.97 percent.

“The 30-year fixed mortgage rate remained under 4% for the fourth straight week, and rates for FHA loans declined close to their lowest level of the year,” noted Joel Kan, MBA’s associate vice president of economic and industry forecasting. “The decrease in FHA rates led to a 27% jump in refinance applications for those loans, and their share of refinance activity - at 14% - was the highest since 2016.”

“The November jobs data showed increased payroll gains and low unemployment, which means conditions remain favorable for steady purchase growth in the coming months,” added Kan.