The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. rose 2.1 percent in the week ended June 18, following a 4.2 percent jump in the previous week.

According to the report, refinance applications increased 2.8 percent, while applications to purchase a home went up 0.6 percent.

Meanwhile, the average fixed 30-year mortgage rate rose from 3.11 percent to 3.18 percent, the highest in four weeks.

"Mortgage rates increased last week, with the 30-year fixed rate rising to 3.18 percent - the highest level in a month. Despite the jump in rates, refinances increased for the second consecutive week, pushed higher by a 4 percent bump in conventional refinance applications," noted Joel Kan, MBA's Associate vice president of economic and industry forecasting. "Purchase applications have regained an upward trend over the past few weeks. Activity was slightly higher for the third straight week, but remained lower than the same week a year ago. Government purchase applications drove most of last week's increase, which also contributed to a slightly lower overall average purchase loan size."