Mortgage demand ramped up last week, with applications increasing 12.5%, according to seasonally adjusted data released Wednesday by the Mortgage Bankers Association (MBA).

The positive news follows three straight weeks of declining demand, during which time mortgage application volume fell by a total of 10.2% as 30-year interest rates hovered close to the 7% threshold.

Joel Kan, MBA’s vice president and deputy chief economist, noted in a statement that both home purchase applications and refinancing activity contributed to the turnaround.

“Coming out of the Memorial Day holiday, mortgage applications increased to the highest level in over a month, driven by growth in both purchase and refinance applications,” Kan stated. “The rate for 15-year fixed rate loans and [Federal Housing Administration] loans saw declines last week, while the 30-year fixed rate was largely unchanged. Purchase applications were 20% ahead of last year’s pace, continuing to show strength compared to a year ago.”

The MBA’s seasonally adjusted purchase index increased 10% from the prior week. The association’s refinance index gained 16% week over week and was 28% higher than a year ago.

The refinance share of mortgage activity increased to 36.7% of total applications from 35.2% the prior week. The adjustable-rate mortgage (ARM) share saw a slight 0.1% uptick to 7.2% of total applications.

Among government loans, the Federal Housing Administration share of mortgage applications declined to 18% from 18.7% the previous week. The Department of Veterans Affairs share was 11.6% last week compared to 12.6% the week prior. The U.S. Department of Agriculture share ticked upward to 0.6% from 0.5%.