The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. surged 6.8 percent in the week ended September 18, following a 2.5 percent decline in the previous week.

According to the report, refinance applications jumped 8.8 percent, while applications to purchase a home increased 3.4 percent.

Meanwhile, the average fixed 30-year mortgage rate rose to 3.10 percent from 3.07 percent.

“Mortgage applications activity remained strong last week, even as the 30-year fixed-rate mortgage and 15-year fixed-rate mortgage increased to their highest levels since late August,” noted Joel Kan, an MBA economist. “Both conventional and government refinance activity, and in particular FHA refinances, picked up last week.”