The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. surged 55.4 percent in the week ended March 6, following a 15.1 percent climb in the previous week.

According to the report, refinance applications jumped 78.6 percent (the highest level of refinancing since April 2009), while applications to purchase a home increased 5.6 percent.

Meanwhile, the average fixed 30-year mortgage rate dropped to 3.47 percent from 3.57 percent.

"Taking into the account the current economic situation and how much rates have fallen, MBA is nearly doubling its 2020 refinance originations forecast to $1.2 trillion, a 37% increase from 2019 and the strongest refinance volume since 2012," noted Joel Kan, an MBA economist. "As lenders handle the wave in applications and manage capacity, mortgage rates will likely stabilize but remain low for now. This, in turn, will support borrowers looking to refinance or purchase a home this spring."