The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. fell 1.1 percent in the week ended September 24, following a 4.9 percent climb in the previous week. This marked the first decline in total mortgage application volume in three weeks.

According to the report, applications to purchase a home fell 1 percent, while refinance applications also declined 1 percent.

Meanwhile, the average fixed 30-year mortgage rate surged from 3.03 percent to 3.10 percent, the highest level since early July.

“Increased optimism about the strength of the economy pushed Treasury yields higher following last week’s Federal Open Market Committee meeting,” noted Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “Mortgage rates in response rose across all loan types.” Kan added that the advance in rates - mostly later in the week - led to a drop in both purchase and refinance applications, with a prominent decline in government loan applications. At the same time, conventional loan applications rose, driven by an increase in conventional refinances.