The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. increased 0.3 percent in the week ended May 22, following a 2.6 percent drop in the previous week.

According to the report, applications to purchase a home surged 8.6 percent, while refinance applications decreased 0.2 percent.

Meanwhile, the average fixed 30-year mortgage rate edged up to 3.42 percent from 3.41 percent.

“The home purchase market continued its path to recovery as various states reopen, leading to more buyers resuming their home search,” noted Joel Kan, an MBA economist. “Additionally, the purchase loan amount has increased steadily in recent weeks and is now at its highest level since mid-March.”