US weekly mortgage application volume increased 2.1 percent on a seasonally adjusted basis from the prior week, the Mortgage Bankers Association (MBA) said Wednesday, citing an increase in purchase activity.

Mortgage purchases climbed 14 percent, the biggest gain since Nov. 2008, while refinance activity fell one percent in the week ended Friday.

“The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,” said Michael Fratantoni, MBA Vice President of Research and Economics.

The MBA said the level of purchase applications on an adjusted basis was the highest since the expiration of the home buyer tax credit on Sept. 30.

The four-week moving average for all mortgage applications was down 3.2 percent.

Rates on 30-year fixed-rate mortgages averaged 4.5 percent, up from 4.46 percent, while the average for 15-year fixed-rate mortgages fell to 3.83 percent from 3.87 percent.