The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. rose 4.6 percent in the week ended October 2, following a 4.8 percent decline in the previous week.

According to the report, refinance applications surged 8.2 percent, while applications to purchase a home decreased 1.5 percent.

Meanwhile, the average fixed 30-year mortgage rate dropped from 3.05 percent to record-low 3.01 percent.

“There are signs that demand is waning at the entry-level portion of the market because of supply and affordability hurdles, as well as the adverse economic impact the pandemic is having on hourly workers and low- and moderate-income households,” noted Joel Kan, an MBA economist. “As a result, the lower price tiers are seeing slower growth, which is contributing to the rising trend in average loan balances.”