The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. rose 1.6 percent in the week ended August 20, following a 3.9 percent drop in the previous week.

According to the report, refinance applications rose 0.9 percent, while applications to purchase a home climbed 3.0 percent.

Meanwhile, the average fixed 30-year mortgage rate declined from 3.06 percent to 3.03 percent, recording its first decrease in three weeks.

“Treasury yields fell last week, as investors continue to anxiously monitor if the rise in COVID-19 cases in several states starts to dampen economic activity,” noted Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “Mortgage rates slightly declined as a result, with the 30-year fixed rate decreasing for the first time in three weeks. Lower rates led to an increase in refinance applications, with government loan applications jumping 10 percent to the highest level since May 2021.” Kan also added that purchase applications for both conventional and government loans also rose.