The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. surged 30.2 percent in the week ended January 10, following a 13.5 percent jump in the previous week. That marked the biggest advance since the week ended March 20, 2009.

According to the report, refinance applications climbed 42.7 percent, while applications to purchase a home rose 15.5 percent.

Meanwhile, the average fixed 30-year mortgage rate dropped to 3.87 percent (the lowest level since September 2019) from 3.91 percent.

"Refinances increased for both conventional and government loans, as lower rates provided a larger incentive for borrowers to act," noted Joel Kan, an MBA economist. "It remains to be seen if this strong refinancing pace is sustainable, but even with the robust activity the last two weeks, the level is still below what occurred last fall."