The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. climbed 2.1 percent in the week ended May 7, following a 0.9 percent drop in the previous week. 

According to the report, refinance applications surged 2.9 percent, while applications to purchase a home increased 0.8 percent.

Meanwhile, the average fixed 30-year mortgage rate declined from 3.18 percent to 3.11 percent, the lowest level since the end of February.

“The decline in rates helped the refinance index reach its highest level in eight weeks, driven by a 4 percent increase in conventional refinances,” noted Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Additionally, refinance loan balances increased for the fourth straight week, an indication that higher-balance borrowers acted to take quick advantage of lower rates.”