Mortgage applications surged 16% on a week-over-week, seasonally adjusted basis in the week ended July 9, while the average 30-year fixed mortgage rate slid to 3.09% from 3.15%, the Mortgage Bankers Association said, citing its Market Composite Index.

On an unadjusted basis, the index slid 7%. The adjusted results include an adjustment for the Fourth of July holiday, the association said in a press release.

The refinance index, meanwhile, jumped 20% from the previous week and was down 29% from the same week a year ago.

The seasonally adjusted purchase index rose 8% from the previous week, while the unadjusted purchase index was down 13% on a weekly basis and down 29% on yearly basis.

“Purchase applications increased last week, but average loan sizes decreased to their lowest level since January 2021,” MBA Associate Vice President of Economic and Industry Forecasting Joel Kan said in a release. “We continue to see ebbs and flows as housing demand remains strong but for-sale inventory remains low. However, lower rates may be helping some homebuyers close on their purchases, especially first-time homebuyers.”