The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. rose 1.3 percent in the week ended June 21, following a 3.4 percent decline in the previous week.

According to the report, refinance applications surged 3.2 percent, while applications to purchase a home dropped 0.9 percent.

Meanwhile, the average fixed 30-year mortgage rate decreased to 4.06 percent from 4.14 percent.

“Markets last week reacted to a more dovish FOMC statement and forecast, with Treasury yields falling after the meeting,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Mortgage rates dropped again for most loan types, which led to an increase in refinance activity, partly driven by a 9% jump in VA applications.”