The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. rose 1.7 percent in the week ended January 1, following a 5.9 percent plunge in the previous week.

According to the report, refinance applications jumped 3.0 percent, while applications to purchase a home decreased 1.6 percent.

Meanwhile, the average fixed 30-year mortgage rate fell to 2.86 from 2.90 percent.

“The record-low rates for fixed-rate mortgages is good news for borrowers looking to refinance or buy a home, as around 98% of all applications are for fixed-rate loans,” noted Joel Kan, MBA’s associate vice president of economic and industry forecasting.