The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. fell 3.3 percent in the week ended April 24, following a 0.3 percent drop in the previous week.

According to the report, refinance applications decreased 7.3 percent, while applications to purchase a home surged 11.6 percent.

Meanwhile, the average fixed 30-year mortgage rate fell to 3.43 percent from 3.45 percent. That was the lowest level in the MBA's survey, which began in 1990.

"The 10 largest states [by application volume] had increases in purchase activity, which is potentially a sign of the start of an upturn in the pandemic-delayed spring homebuying season, as coronavirus lockdown restrictions slowly ease in various markets," noted Joel Kan, MBA's associate vice president of economic and industry forecasting. "California and Washington continued to show increases in purchase activity, with New York seeing a significant gain after declines in five of the last six weeks."