The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. fell 1.5 percent for the last two weeks of 2019. The MBA published data for two weeks because it was closed over the holidays.

According to the report, refinance applications slumped 8 percent from two weeks ago, while applications to purchase a home surged 5 percent.

Meanwhile, the average fixed 30-year mortgage rate declined to 3.91 percent from 3.99 percent two weeks earlier.

"Mortgage rates dropped last week, as investors sought safety in U.S. Treasury securities as a result of the events in the Middle East, with the 30-year fixed mortgage rate declining to its lowest level since early October," said Mike Fratantoni, MBA's chief economist. "In the middle of December, we really felt the vibe was going to pick up, and the market was going to pick up in January, due to several people calling to get pre-approved in December," he added. "Typically they call getting pre-approved in February or March."