The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. rose 1.7 percent in the week ended October 23, following a 0.6 percent drop in the previous week.

According to the report, refinance applications surged 2.5 percent, while applications to purchase a home increased 0.2 percent.

Meanwhile, the average fixed 30-year mortgage rate edged down to 3.00 percent from 3.02 percent.

“These results highlight just how strong the upper end of the market is right now, with outsized growth rates in the higher loan size categories,” noted Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Furthermore, housing inventory shortages have pushed national home prices considerably higher on an annual basis.”