The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. surged 4.9 percent in the week ended September 17, following a 0.3 percent gain in the previous week.

According to the report, applications to purchase a home rose 2.2 percent, while refinance applications climbed 6.5 percent.

Meanwhile, the average fixed 30-year mortgage rate remained unchanged at 3.03.

“There was a resurgence in mortgage applications the week after Labor Day, with activity overall at its highest level in over a month, and purchase applications jumping to a high last seen in April 2021,” noted Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “Housing demand is strong heading into the fall, despite fast-rising home prices and low inventory. The inventory situation is improving, with more new homes under construction and more homeowners listing their home for sale. Despite this week’s increase, purchase applications were still 13 percent lower than the same week a year ago.”