The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. fell 5.0 percent in the week ended December 13, following a 3.8 percent advance in the previous week.

According to the report, refinance applications slumped 6.5 percent, while applications to purchase a home dropped 2.1 percent.

Meanwhile, the average fixed 30-year mortgage rate remained unchanged at 3.98 percent.

“As we move into the slowest time of the year for home sales, purchase application volume is declining but continues to outperform year-ago levels, when rates were much higher,” said Mike Fratantoni, MBA’s chief economist. “2019 was another year of inadequate housing supply in relation to demand. The good news is that the tide could be slowly turning for potential buyers. Housing starts and permits rose strongly in November, and homebuilder confidence has surged to a level not seen since 1999.”