The Mortgage Bankers Association (MBA) reported the U.S. mortgage application volume jumped 8.9 percent in the week ended March 22, following a 1.6 percent increase in the previous week, as mortgage rates fell to the lowest level in more than a year. It represented the biggest rise since the week ended January 11.

According to the report, refinance application advanced 12.4 percent and applications to purchase a home rose 6.4 percent last week. 

At the same time, the average contract interest rate for 30-year fixed-rate mortgages decreased to 4.45 percent from 4.55 percent.