Mortgage application volumes snapped three weeks of declines, rising last week on a seasonally adjusted basis, the Mortgage Bankers Association (MBA) reported Wednesday.

Reflecting an adjustment for the Memorial Day holiday the previous week, the MBA’s Market Composite Index, a measure of mortgage application volumes, increased 10.8% over the week ending June 5, with gains across refinance and purchase channels.

The refinance component index rose 15% from the previous week to land 20% above year-ago levels, while the seasonally adjusted purchase index posted 7% growth. The unadjusted purchase index was 4% higher than a year ago, even as mortgage rates increased.

“Mortgage rates were volatile last week as news from the Middle East continues to drive markets,” noted Mike Fratantoni, chief economist at the MBA, in commentary accompanying the report. However, he added that the volatility presented some borrowers with “opportunities” to secure “somewhat” lower rates.

MBA data shows the average mortgage rate for typical 30-year home loans climbed to 6.6% during the first week of June, up from 6.57% in the last week of May and its fourth consecutive week above 6.5%.

Volatile rates continue to challenge mortgage lenders and borrowers as the Iran war that began in late February proceeds through its fourth month.

The refinance share of application activity notched a modest increase to 40.2% of all applications from 38% the previous week, while the adjustable-rate mortgage share rose to 8.6% from 8.5%, below elevated levels around 9.5% in recent weeks.

Meanwhile, the share of applications for loans insured by the Federal Housing Administration (FHA) increased to 17.4% from a four-week low of 17% the previous week. The share of applications for loans backed by the Department of Veterans Affairs fell to 13.4% from 14.4% one week earlier.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased slightly over the week, from 6.26% to 6.27%, below May’s monthly high of 6.31%.