The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. rose 1.5 percent in the week ended February 21, following a 6.4 percent decrease in the previous week.

According to the report, refinance applications fell 0.8 percent, while applications to purchase a home surged 5.7 percent.

Meanwhile, the average fixed 30-year mortgage rate dropped to 3.73 percent from 3.77 percent.

"Last week appears to have been the calm before the storm. Weaker readings on economic growth caused a slight drop in mortgage rates, bringing them back to their level two weeks ago, but applications overall moved 1.5 percent higher," noted Mike Fratantoni, MBA's senior vice president and chief economist. "As fears regarding the coronavirus have increased, Treasury yields have dropped to record lows this week amid the ensuing financial market volatility. Next week's results will show the impact this drop in Treasurys had on mortgage activity."