The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. surged 21.7 percent in the week ended August 9, following a 5.3 percent increase in the previous week.

According to the report, refinance applications climbed 37 percent to the highest level since July 2016, while applications to purchase a home rose 2 percent

Meanwhile, the average fixed 30-year mortgage rate decreased to 3.93 percent from 4.01 percent.

“The 2019 refinance wave continued, as homeowners last week responded to extraordinarily low mortgage rates. Fears of an escalating trade war, combined with economic and geopolitical concerns, once again pulled U.S. Treasury rates lower,” noted Joel Kan, MBA’s associate vice president of economic and industry forecasting.