The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. fell 1.2 percent in the week ended January 17, following a 30.2 percent climb in the previous week.

According to the report, refinance applications dropped 1.8 percent, while applications to purchase a home declined 2.0 percent.

Meanwhile, the average fixed 30-year mortgage rate remained unchanged at 3.87 percent, the lowest level since September 2018.

"Even with more positive developments surrounding the U.S. and China trade negotiations and healthy retail sales data, investors seemed cautious and maintained their demand for safer U.S. Treasurys, which kept yields lower," noted Joel Kan, an MBA economist. "Our expectation is that rates will stay along this same narrow range."